India has plans in place to increase its LNG import capacity to 70 million tons a year, which means the country will import more LNG than China did last year and bring it closer to the world’s top LNG importer, Japan.
The plans will make India a top destination for LNG importers and could bring prices lower as the world is still oversupplied and production is set for further growth, intensifying competition.
India currently has just four LNG import terminals and will need to build another 11 over the next seven years to boost its import capacity from the current 20 million tons. The LNG plans are part of a strategy aiming to expand the national electricity network and move households away from wood for heating and cooking, replacing it with electricity and also reduce its dependence on coal as a primary energy source.
The 11 import terminals will be just the start, as well. At some point in the future, India will need more than 15 of these to satisfy its demand for the fuel. This should be music to the ears of all large LNG producers, or rather a starting pistol to position themselves for the Indian market.
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