The Strategist

India doubles LNG imports in February to 20-month high

04/25/2024 - 03:06

According to the Ministry of Commerce and Industry, India imported 2.164 million tons of liquefied natural gas in February 2024, a 56% increase from 1.384 million tons in the same month the previous year.

CJ Unnikrishnan....T
CJ Unnikrishnan....T
Since May 2022, this level has been the highest in the previous 20 months.

Following $436 in January, the average import price finally reached $422 per thousand cubic meters. Reduced prices around the world have an impact on India's purchasing power.

Equatorial Guinea, Nigeria, the United States, and Qatar supplied 932 thousand tons, or over half of the total tonnage.

Long-term prospects for expansion in the global LNG market are linked to Southeast Asian nations, China, and India. The improvement of local distribution infrastructure, increased demand from industry (particularly the fertilizer sector), and robust power sector consumption are expected to propel India's natural gas consumption to expand at a compound annual growth rate (CAGR) of 7% in 2024, according to the International Energy Agency (IEA).

The IEA increased its prediction for India's gas consumption growth to 7% from 6% in the previous version of the study in its quarterly gas market assessment, which was made public on Wednesday.