**2.5 LNG import**

Globally LNG trade registered a strong improvement over the previous decade. By December 2020, global LNG trade reached 350 million tons. By February 2021, the global LNG regasification capacity in 39 markets hit 850 million tons per annum (MMTPA). According to the International Gas Union Report (2021), the leading natural gas deficit countries like Japan, China, South Korea, India, and Spain depended on LNG imports. The rising demand of LNG in the Asia-pacific region resulted in the liquefaction capacity addition in the middle east, Russia, and Australia.

Due to India's rising natural gas deficit the import of LNG escalated from 18 billion cubic meters (BCM) in 2012 to 33.8 BCM in 2020 (**Figure 5**). Owing to severe Covid-19 linked disruptions including national and state lockdowns, natural gas consumption slowed down in 2020–2021. As a result, the import of LNG was marginally lower than the previous year. India largely depended on Qatar for its LNG import. However, newer import destinations like Russia and USA offered an opportunity to reduce over-dependence on any single-sourcing country.

India's LNG import would continue to increase in the near and long term. Recently Petronet LNG CEO stated that "India needed to increase its LNG import capacity to 155 MMTPA considering 80% utilization to enhance the use of the cleaner fuel" [8]. The capacity expansion will depend on pipeline connectivity for evacuating re-gasified LNG (R-LNG), the price of imported LNG, and acceptance of R-LNG at the price point by the consuming industries. High LNG price often hampers buyer acceptance; therefore, it slows down LNG infrastructure

## *Natural Gas - New Perspectives and Future Developments*

**Figure 5.** *LNG import in India. Source: prepared by the authors using data available on the PPAC website [7].*

development. However, investment in LNG infrastructure is long-term in nature, so temporary LNG price fluctuations should not deter LNG infrastructure build-up.
