India Retains Top Spot as LNG Buyer from Qatar

New Delhi, India – In a report by Alpen Capital, Qatar solidified its position as the leading supplier of liquefied natural gas (LNG) to India for the financial year 2022-23. The report highlights that Qatar supplied 8. 5 million tonnes (mt) of LNG to India during the fiscal year, constituting a significant 23% share of India’s total LNG imports. The United States followed closely behind as the second-largest LNG supplier to India, providing 7. 8 mt, while Russia came in third at 5. 3 mt.

India’s LNG imports witnessed a year-on-year increase of 5%, reaching 37 mt in FY 2022-23. This surge is attributed to a growing demand for cleaner fuels in the power sector, coupled with rising domestic gas prices. Alpen Capital forecasts India’s LNG imports to reach 50 mt by FY 2026-27.

The burgeoning trade relationship between Qatar and India extends beyond LNG. The report details that Qatar exports ethylene, propylene, ammonia, urea, and polyethylene to India, which has recently emerged as the world’s fifth-largest economy with a gross domestic product (GDP) of $3. 7 trillion. There has also been a notable rise in imports of commodities like food, vegetables, medications, metals, and construction materials from India in recent years.

This robust trade relationship is further reflected in the progressive growth of bilateral trade between the two nations. Total trade volume, encompassing both exports and imports, has steadily increased from $9. 2 billion in 2020-21 to $18 billion in 2022-23.

India’s growing appetite for LNG is likely driven by its ambitious clean energy goals. The country aims to increase the share of natural gas in its energy mix to 15% by 2030, from the current level of around 6%. LNG offers a cleaner alternative to coal, a major contributor to air pollution in India.

The report by Alpen Capital underscores the strategic importance of the Qatar-India energy partnership. Qatar’s continued dominance as a supplier and India’s rising demand for LNG ensure a stable and mutually beneficial trade relationship between the two countries. As India strives to achieve its clean energy targets, diversification of LNG suppliers and investments in domestic gas infrastructure will be crucial for sustained growth in this sector.