India Need to Keep Pace with LNG Infrastructure – IGU Report

Expanding liquefied natural gas (LNG) import capacity alone will not be enough to drive India's long-term natural gas growth, with the country needing faster investment in pipeline infrastructure, gas distribution networks, gas-intensive industries and sweeping reforms to pricing and market design, according to a report by the International Gas Union.

While India has significantly increased its LNG regasification capacity in recent years, investment in transmission and distribution infrastructure has failed to keep pace, limiting the country's ability to expand gas consumption, the report said.

The report comes against the backdrop of heightened concerns over India's energy security following disruptions to shipping through the Strait of Hormuz during the recent Iran conflict.

"The Strait of Hormuz crisis has underlined several import dependencies for India, particularly in gas supply chains. India's heavy reliance on Gulf-sourced LPGs and LNG, where Qatari exports are the primary source of supply, will bring into question India's historic reliance on close geographical suppliers that have proven to be vulnerable to disruption.