India’s LNG Imports Rise to Meet Surging Power Demand

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India is set to increase its liquefied natural gas (LNG) imports as electricity demand surges ahead of the summer months, according to Petronet LNG CEO A.K. Singh. The Indian government has directed companies to maximize generation from gas-based power plants between May 26 and June 30, aiming to ease pressure on coal-based generation and prevent blackouts.

Despite a slow start in May due to rainfall, rising temperatures are expected to spike electricity consumption through June. Indian buyers are showing renewed interest in LNG as spot and long-term prices have narrowed. Most are targeting deals below $10 per million British thermal units (mmBtu).

To handle the rising demand, Petronet is expediting the expansion of its Dahej LNG terminal in Gujarat, increasing capacity from 17.5 million tonnes per year to 22.5 million tonnes. The facility is expected to operate at peak levels during the summer months.

This strategic move supports India’s broader push to diversify its energy mix and reduce dependence on coal, while maintaining a stable power supply.