India expresses interest in US LNG

India would be open to purchasing LNG from the US if the world’s biggest supplier of the super-chilled fuel offered reasonable prices, the CEO of state-owned Petronet said on February 12, Reuters reported.

New Delhi has set ambitious targets to reduce its greenhouse gas emissions and is prioritizing fuel switching from coal to LNG to reach its targets.

The Asian powerhouse is aiming to increase the portion of natural gas in its energy mix to 15% by 2030. Currently, natural gas comprises about 7% of the country’s energy mix.

India has also expressed interest in purchasing LNG from Canada, which is ramping up its production. Canada’s Prime Minister Mark Carney is expected to visit India in the coming weeks and make a push for strengthening energy ties.

However, increasing purchases from the US may be higher on the agenda for Indian Prime Minister Narendra Modi as he seeks to protect India from high tariffs being slapped on Indian imports to the US.

In early February, US President Donald Trump promised to reduce tariffs on imported Indian products from 50% to 18% if New Delhi more than doubles imports from the US. India held a $41bn trade surplus with the US in 2024-2025.

India is now the world’s fourth-biggest purchaser of the super-cooled gas and has eight LNG import terminals.

India is leaning heavily on LNG imports for its fertiliser industry, which uses more gas in the country than city gas distribution and power generation combined.

Previously, India sourced most of its LNG from Qatar and Australia, the world's second and third largest LNG exporters.

As the country's population and economy grows, India is also seeking to lock in LNG supply on long-term deals and reduce its reliance on the spot market, where prices can be volatile.