India accounts for 20% of upcoming regasification capacity in Asia Pacific
India, the world’s fourth largest liquefied natural gas (LNG) importer, is expanding its natural gas infrastructure by adding 24 million tonnes per annum (mtpa) of capacity accounting for around 20 per cent of the total regasification capacity being added in Asia Pacific.
As per the latest annual report of the Gas Exporting Countries Forum (GCEF), India will be the world’s largest growth market for natural gas in the next decade with China claiming the top spot till 2030.
The GECF report pointed out that AsiaPacific boasted of around 566 mtpa of regasification capacity in 2022, with a significant 82 per cent primarily situated within the legacy JKT (Japan, South Korea, Chinese Taipei) group, constituting 64 per cent and China with 18 per cent. The rest, comprising South and Southeast Asia, contributed to the remaining 18 per cent.
ASIA PACIFIC
Among these, Japan leads with 210 mtpa , followed by South Korea (139 mtpa ), China (100 mtpa) and India (40 mtpa).
“In 2022, construction was underway for approximately 121 mtpa of regasification capacity in Asia Pacific, with China (74 mtpa ) and India (24 mtpa ) taking the lead. China represents around 60 per cent of the capacity under construction, while India is responsible for roughly 20 per cent of the ongoing development of regasification infrastructure,” it added.
India’s gas demand is forecast to be met via expanded gas pipeline and LNG regasification capacity. Estimations indicate that Indian LNG imports could double, reaching 39 mt by 2030, and rise to 80 mt by 2040 and 105 mt by 2050.
INDIA’S CAPACITY
“Realising such an outcome necessitates substantial investment in both supply and distribution infrastructure. By 2050, it is anticipated that India will increase its regasification capacity by 75 mtpa, reaching a total of 115 mtpa , which marks a significant rise from the existing capacity of 40 mtpa,” GECF said.
India is actively targeting a 15 per cent increase in the share of natural gas in its energy mix by 2030.
However, the GECF report said that despite a robust government ambition for natural gas to reach 15 per cent, the target is “unlikely to be met”.