India's Liquefied Natural Gas (LNG) imports from United States reached an all-time high | Current Affairs | Vision IAS
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India's Liquefied Natural Gas (LNG) imports from United States reached an all-time high

Posted 24 Feb 2025

2 min read

According to US Energy Information Administration, India’s LNG imports from U.S rose by more than 71% Y-o-Y during first eleven months of 2024.

About LNG

  • It is created by transforming natural gas into a liquid state, by cooling it to -162°C (-260°F). 
  • Since it is composed primarily of methane (around 90%), LNG is odourless, colourless, non-toxic and non-corrosive. 
  • India is fourth-largest LNG importer globally.

Why is India’s LNG dependence increasing?

  • Diversify Energy basket: Coal reduction efforts drive transition to cleaner LNG fuel.
    • Government targets to raise natural gas share in energy mix to 15% by 2030.
  • Gas-based Economy: Transitioning towards a gas-based economy to reduce reliance on imported crude oil.
  • Climate Change target: LNG produces 40% less CO2 than coal and 30% less than oil, making it cleanest of fossil fuels.

Challenges associated with LNG

  • High prices and extreme price volatility: Due to demand-supply imbalances (Russia-Ukraine war) etc.  
  • Inadequate Pipeline Network: To move LNG from terminals to areas of its application, hindering distribution and availability of LNG throughout nation, especially in isolated regions.
  • Limited storage capacity: It makes India vulnerable to price fluctuations in global LNG market

India’s Initiatives for LNG

  • Draft LNG policy to promote LNG usage in transportation and mining sector.
  • Central Motor Vehicles Rules, 1989 modified in 2017 to include LNG as transport fuel.
  • Tags :
  • Liquefied Natural Gas (LNG)
  • Draft LNG policy
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