India-Qatar LNG Trade: Powering a Strategic Energy Partnership for 2030

(Source – Indian Express, Section – Explained – Page No. – 15)

Analysis of the news:

Strategic Energy Partnership

• India and Qatar share a robust energy partnership, with liquefied natural gas (LNG) at its core.

• Qatar is India’s largest LNG supplier, accounting for nearly 39% of India’s total LNG imports.

• The two nations now aim to double bilateral trade to $28 billion annually by 2030, driven significantly by LNG imports.

Growing LNG Demand in India

• India’s natural gas consumption is projected to rise by 60% by 2030, with LNG imports expected to double to 65 billion cubic metres annually.

• This surge is fueled by India’s goal to increase the share of natural gas in its primary energy mix from 6% to 15% by 2030, making LNG a critical component of India’s energy strategy.

Qatar’s Expanding Export Capacity

• Qatar plans to nearly double its LNG export capacity from 77 million tonnes per annum (mtpa) to 142 mtpa by 2027.

• This expansion aligns perfectly with India’s rising LNG demand, likely strengthening Qatar’s position as India’s primary LNG supplier for the foreseeable future.

US: An Emerging Competitor

• The US, India’s second-largest LNG supplier, poses significant competition to Qatar.

• Recent policy shifts in the US, including lifting export bans on LNG projects, could boost its LNG exports to India.

• Indian companies are actively exploring long-term LNG contracts in the US, potentially altering future trade dynamics.

Conclusion

• The India-Qatar LNG trade relationship remains pivotal as both nations aim to deepen economic ties.

• With India’s LNG demand surging and Qatar’s export capacity expanding, LNG will continue to drive this strategic partnership.

• However, the growing US presence in the LNG market could reshape India’s import landscape in the coming years.