LNG import dependency set to decline from 53% to 45% by FY26

Dependence on LNG:   substantial growth in domestic gas production led to reduced import dependence on LNG. With around 30 million metric standard cubic meters per day (MMSCMD) ded over last three years and anor 15 MMSCMD expected to be ded by FY25, is reducing India's reliance on imported Liquified Natural Gas. This trend reflects a grual decline in dependency, from 53 per cent of total consumption in FY21 to an estimated 45 per cent by FY26, a report by CareEdge said on Wednesday. 

“On back of limited domestic natural gas production, India historically h a high dependence on imported gas. However, during last three years ended FY23, gas imports h declined mainly due to improved domestic gas production and a rise in imported gas prices,” CareEdge report said. 

According to report, India aims to boost its natural gas share in energy mix to 15 per cent by 2030, a significant increase from current 6 per cent. This ambition aligns with efforts to transition towards cleaner energy sources. Various sectors like fertilizer, city gas distribution, power, refineries, and petrochemicals are expected to drive this demand surge. 

stabilisation of imported LNG prices post disruptions caused by Russia-Ukraine conflict in FY23 is encouraging. This stability, along with expansion of LNG export capacities globally, is poised to bolster natural gas demand in India. This supports nation's goals of energy security and sustainability, marking significant progress towards achieving its ambitious targets.