Context:
Recently, The United States became India’s second-largest liquefied natural gas (LNG) supplier, according to the World LNG Report 2024
More on the news
- The USA has overtaken the United Arab Emirates (UAE) by supplying 3.09 million tonnes (MT) of LNG in 2023
- World LNG Report is released by the International Gas Union (IGU).
Key Highlights
US LNG Supply Growth:
- The US supplied 1.8 MT of LNG to India in 2019, rising to 3.86 MT in 2021.
- The US will regain its position as the second-most prominent supplier to India, the fourth-largest LNG importer globally, in 2023.
- The US also emerged as the world’s largest LNG exporter in 2023.
Qatar’s Dominance:
- Qatar remains India’s largest LNG supplier, with shipments peaking at 10.92 MT in 2023, maintaining its lead for five consecutive years from 2019 to 2023.
Decline of African Suppliers:
- The share of African nations in India’s LNG imports has significantly decreased, with Nigeria and Angola’s shipments plummeting from pre-pandemic levels of 2.7 MT and 2.9 MT, respectively, to just 0.73 MT each in 2023.
Market Dynamics:
- The proximity of US LNG cargoes to India via the Cape of Good Hope has incentivized sellers to prioritize Indian markets over North Asia.
Long-term Contracts:
- Despite variations in world prices, LNG usage is supported by ongoing long-term contracts that Indian firms have signed with US suppliers.
International Gas Union (IGU)
- The International Gas Union (IGU) is a global organization founded in 1931, representing the worldwide gas industry. It is registered in Vevey, Switzerland, with its Secretariat located in London, UK.
Membership
- The organization spans 5 continents, with more than 150 members in over 80 countries, covering over 90% of the global gas market.
India’s Natural Gas Consumption (April 2023- January 2024)
- The fertilizer sector is the largest consumer of Natural Gas in India, accounting for approximately 32% of the total natural gas consumption.
- The petrochemical and refinery sectors accounted for 12% of natural gas consumption.
- The power sector consumes about 12% of India’s total natural gas, primarily in gas-based power plants
- India’s current gas-based power capacity is around 25 GW, for which India needs a demand of about 30 million-35 million metric tons/year of LNG.
- City Gas Distribution (CGD) sector entities, responsible for distributing natural gas to households and industries in cities, account for around 19% of India’s total natural gas consumption.
Objectives and Activities
- Coverage: The IGU covers the entire gas value chain, from the supply of natural, decarbonized, and renewable gas, including hydrogen, through transmission and distribution, to the point of use.
- Trade Support: IGU promotes international gas trade by advocating for non-discriminatory policies and sound contracting principles.
- Technology and Environment: It supports the development of technologies that enhance the environmental benefits of gas and improve the safety of its production, transmission, distribution, and utilization.
Events
IGU organizes major international gas events, including:
- World Gas Conference (WGC)
- International Gas Research Conference
- World LNG Conference series