US LNG Boom to Benefit India: Petronet LNG CEO
Monday, Jan 27, 2025 9:33 am ET
1min read The recent surge in US LNG production, following President Trump's order to resume consideration of LNG export applications, is expected to have a positive impact on the global LNG market dynamics, particularly in Asia, and India's energy security and pricing. According to Petronet LNG Chief Executive Akshay Kumar Singh, the increased LNG supply from the US will help stabilize international LNG prices. "If more LNG plants come in the US, it will stabilise international LNG prices," Singh said in a post-earnings media call (Reuters, 2025).
For a consuming nation like India, which is price-sensitive, the stabilisation of LNG prices could significantly improve consumption. Singh expects LNG prices to hover around $12-$14 per mmBtu in the current quarter, but the additional volumes required to refill European gas reserves could keep prices elevated in the second quarter of the year (Singh, Reuters, 2025). However, if prices were to fall within the range of $7 to $8 per mmBtu, India's LNG consumption would likely increase drastically.
The increased US LNG production could also help India diversify its energy sources and reduce reliance on traditional suppliers like Qatar and Russia. In 2023, the US emerged as India's second-largest LNG supplier, delivering 3.09 million tonnes (MT) (EIA, 2023). This shift in supply dynamics could help India maintain a balanced energy mix and mitigate geopolitical risks.
However, India's energy security also depends on the timely completion of natural gas pipeline networks to move LNG from coastal import facilities to major demand centers further inland (EIA, 2020). Without adequate pipeline infrastructure, the benefits of increased LNG production may not be fully realized.
In conclusion, the increased US LNG production is expected to have a positive impact on the global LNG market dynamics, particularly in Asia, by stabilizing prices and providing an additional source of LNG for consuming nations like India. This could enhance India's energy security and pricing, but it is crucial to consider the importance of developing adequate pipeline infrastructure to fully realize these benefits.
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