India’s natural gas import bill up 17% in April-January – Economy News

India’s natural gas import bill surged 17.2% to $12.9 billion during April–January of the current fiscal, compared to $11.0 billion in the same period last year, driven by rising consumption, according to data from the Petroleum Planning and Analysis Cell (PPAC). In January alone, the import bill increased by 8.3% to $1.3 billion compared to January 2024.

The country imported 31,347 million standard cubic meters (mmscm) of liquefied natural gas (LNG) in the first ten months of FY25, marking a 21% increase over the same period in FY24. Analysts attributed this growth to rising demand and stabilized global natural gas prices, which had surged to record highs in FY23.

India’s natural gas consumption rose 10% to 61,282 mmscm, driven by higher demand from the city gas distribution (CGD), fertiliser and power sectors. This increased the country’s reliance on imported gas to 51.2%, up from 46.5% in the same period last fiscal.

Despite the surge in imports, domestic natural gas production saw only a marginal 2.6% increase during April–January. State-owned Oil and Natural Gas Corporation (ONGC) produced 15,763 mmscm of natural gas during this period, down from 16,189 mmscm last year. Production remained below targets, widening the gap between demand and domestic supply.

India’s LNG imports are expected to moderate in 2025, with growth projected to slow to 10%, down from 21% in 2024, according to the International Energy Agency (IEA). The slowdown is attributed to tempered demand growth and continued global competition for LNG cargoes.

The IEA forecasts an 8% increase in India’s natural gas demand in 2025 (equivalent to an additional 6 billion cubic meters), supported by expanding energy needs and rapid economic growth.

In 2024, India became the world’s fourth-largest LNG importer, accounting for 7% of global LNG imports. This growth was primarily driven by the industrial and oil refining sectors, followed by residential, commercial, and transport sectors.

India’s LNG imports increased throughout 2024, supported by lower prices. According to the agency, LNG cargoes tendered for delivery in India (including supplier offers and user invitations) rose 70% year-on-year.

The IEA expects a shift in global LNG market dynamics in 2025 as new liquefaction projects ramp up and pipeline supply risks in Europe drive renewed LNG import growth in the region.

Meanwhile, several Indian oil and gas majors are securing more crude oil and LNG from the US. Reports suggest Indian Oil, the country’s largest oil marketing company, is in talks with Cheniere Energy for a long-term LNG supply pact, while GAIL India has revived plans to acquire a stake in a US liquefaction facility.

During Prime Minister Narendra Modi’s recent visit to the US, both nations reaffirmed their commitment to expanding energy trade. This move aims to strengthen India’s energy security and position the US as a leading supplier of crude oil, petroleum products, and LNG to India.

With the Indian government aiming to increase natural gas’s share in the energy mix from 6% to 15% by 2030, analysts view greater US gas imports as a positive development.

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