New Delhi — The International Gas Union (IGU) says India can’t scale up natural gas use just by adding LNG import terminals. The country also needs stronger pipelines, better pricing, and market reforms.

The Problem

Infrastructure mismatch: India has boosted LNG regasification capacity, but investment in transmission and city gas distribution is lagging. This limits how much gas can actually reach industries and homes.

Import dependence & risk: About 50-52% of natural gas and 60-65% of LPG demand is met through imports, mostly via the Strait of Hormuz from Qatar, Australia, US and Russia. Recent shipping disruptions showed how vulnerable this route is.

Cost pressure: High global gas prices are making imported LNG expensive for power plants, factories and households.

IGU’s Recommendations

  1. Expand pipelines in North, East and Central India with competitive tariffs so gas can compete with coal
  2. Reform market rules – liberalize LNG terminal booking, cut system entry charges, and improve utilization
  3. Fix pricing framework – current $7+/MMBtu domestic prices are hurting demand
  4. Diversify import sources to reduce geopolitical risk

Outlook

Global LNG supply is set to rise this decade, which could lower prices. But the IGU warns: cheaper LNG won’t automatically mean higher consumption unless India fixes delivery infrastructure and market design first.

By Admin

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