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Rising power demand pushes India’s LNG terminal utilisation higher in 2024
India’s LNG imports rose by more than 19% to 26.15 mt in 2024 against 21.96 mt in 2023
A searing summer coupled with prolonged heat waves accelerated India’s power demand last year with the world’s third largest energy consumer enhancing gas-based electricity generation, leading to higher utilisation at LNG terminals compared to 2023 and 2022.
Natural gas is converted into LNG for transporting it through gas tankers. Regasification is the process of converting it back into gas. Higher LNG imports lead to higher utilisation levels at LNG terminals.
According to the International Gas Union’s (IGU) world LNG report 2025, India’s LNG imports rose by more than 19 per cent to 26.15 million tonnes (mt) in 2024 against 21.96 mt in 2023, a 4.19 mt Y-o-Y increase.
India accounted for 6.36 per cent of the global LNG market last year. China (19.12 per cent share), Japan (16.47 per cent), South Korea (11.43 per cent) and France (4.39 per cent) are the other top four LNG importing countries.
Demand rebounded in Asia with China and India posting strong Y-o-Y growth in spot LNG imports, driven by heat waves, infrastructure expansions, and greater reliance on gas-for-power, IGU pointed out.
Higher Utilisation
“Average regasification utilisation in India grew noticeably in 2024 from 49 per cent in the prior year (2023) to 59 per cent, as the market raised LNG buying to meet gas for power demand due to heat waves,” the report pointed out.
Regasification utilisation in 2023 was flat at 49 per cent compared to the 2022 CY, IGU data show.
On the back of its regasification capacity additions, India witnessed rapid growth in LNG imports during 2010-2020, making it one of the top importing markets. It rose to become the world’s fourth largest LNG importer in 2023, with 22 mt imports, replacing France.
India has seven LNG terminals with a cumulative capacity of 44.5 mt per annum (mtpa) as of 2024 (CY), overtaking the US to become the world’s fifth largest market by regasification capacity.
Three new terminals and four expansion projects are under construction in India, of which five are onshore and two are floating based. By 2026, these undertakings are projected to bring 27 mtpa of regasification capacity and 1.12 million cubic meters (mcm) of storage capacity online, it added.
Uncertainties
Sustained low prices associated with the arrival of the next wave of LNG capacity could spark a surge in LNG demand. However, the outlook is clouded by the risk of delays and cost overruns in new supply and expansion projects emanating from factors such as geopolitics, trade policy, inflation, and labour shortages, IGU pointed out.“In Asia, most of the demand risk lies in India’s and China’s energy mix and economic outlook. When prices were elevated in late 2024, the price arbitrage for US cargoes into Asia was firmly shut as China and India shunned significant spot procurement.
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