Rapid Fire
US Surpasses UAE as India’s Second Largest LNG Supplier
- 01 Aug 2024
- 2 min read
Source: BL
In 2023, the United States emerged as India’s second-largest supplier of liquefied natural gas (LNG), surpassing the United Arab Emirates, delivering 3.09 million tonnes (MT) in 2023. Qatar remained the largest supplier with shipments in 2023. This shift is driven by changing global LNG market conditions and evolving trade dynamics.
- Weakening international LNG prices and India’s geographical proximity via the Cape of Good Hope have made US LNG more competitive compared to other suppliers, including those in North Asia.
- India, the fourth-largest LNG importer globally, saw its LNG imports decline in 2022 due to rising prices, but US exports to India increased from 2.16 MT in 2022 to 3.09 MT in 2023.
- The UAE’s LNG exports to India fluctuated, reaching 2.85 MT in 2023 after a decline in previous years.
- LNG is natural gas cooled to a liquid state at about -260°F, reducing its volume by 600 times, enabling long-distance transport to markets not connected by pipelines. At terminals, LNG is converted back to gas and distributed via pipelines.
- Natural gas is a cleaner and more economical alternative to conventional hydrocarbons, comprising 70-90% methane, crucial in India's transition to greener energy.
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