India’s liquefied natural gas (LNG) imports are set to rise in the coming weeks as power demand increases, according to A.K. Singh, CEO of Petronet LNG, the country’s largest gas importer.
The surge comes after the Indian government invoked emergency measures last week, directing gas-based power plants to operate at higher capacity from May 26 to June 30 to prevent electricity shortages.
Although early May saw subdued demand due to rainfall and cooler temperatures, Singh noted that power demand is now climbing, driving renewed interest in LNG imports by the third or fourth week of May and into June.
Gas-fired power plants in India have remained underutilized due to their higher operating costs compared to coal, solar, and wind, with nearly 60% of capacity sitting idle.
However, a narrowing gap between spot and long-term LNG prices is prompting some companies to increase purchases, especially as prices approach the preferred $10/MMBtu mark.
To support the anticipated uptick in demand, Petronet aims to expand its Dahej terminal from17.5 to 22.5 million tonnes per year within the next three to four months.
The terminal’s increased capacity will allow Petronet to maximize gas imports and meet peak summer power requirements.
India’s LNG strategy reflects a broader push to balance energy security and cleaner fuel options, even as gas competes with cheaper alternatives.
This move signals the government’s proactive response to potential power shortages amid growing industrial and residential electricity needs.
With summer approaching, LNG is expected to play a critical role in stabilizing India’s power grid during peak demand periods.