Demand concerns loom over India's liquefied natural gas expansion spree

From 37.5 mtpa, India to expand its capacity to 74 mtpa in a decade

Prime Minister Narendra Modi’s recent visit to the United States was marked by a $2.5-billion long-term liquefied natural gas (LNG) deal. Though the government expects a surge in LNG demand, industry players are sceptic of natural gas use in India’s energy basket. 

Gas pipeline capacity utilisation is still as low as around 40 per cent while the existing LNG terminals running at 58 per cent capacity.

India has drawn a roadmap to double its regasification capacity from 37.5 million tonne per annum (mtpa) to 74 mtpa in the next 10 years at an investment of around Rs 30,000 crore, excluding