India’s clear message to the US: Gas is needed, but not at a high price; LNG deal only at the right rates
New Delhi (The Uttam Hindu): Balancing energy security with affordability, India has clearly conveyed its position to the United States. India has stated that while it needs gas to meet its energy requirements, it will not buy expensive gas. The message from Petronet LNG leadership is unambiguous: LNG imports from the US will happen only if prices are reasonable and competitive.
Addressing the issue, Petronet LNG CEO Akshay Kumar Singh said that India’s priority is to ensure affordable and beneficial energy for its citizens. Therefore, any LNG purchase from the US will be considered only when prices are lower and comparable with other fuels. Cost competitiveness, he stressed, is essential for wider gas adoption.
Consumption will rise only if prices are right
Speaking at a press conference, Singh said India is interested only in gas that does not burden consumers financially. He noted that people will shift to gas as an alternative to petrol, diesel, or coal only when prices remain under control. His remarks come at a time when bilateral trade talks between India and the US are gaining momentum, with both countries exploring new agreements.
India’s strong signal amid trade talks
The statement is significant from both diplomatic and trade perspectives. Recently, US President Donald Trump announced a reduction in import duties on Indian goods from 50% to 18%. In return, the US expects India to substantially increase its imports. Data shows that total trade between the two countries stood at USD 132 billion in 2024–25, with India enjoying a trade surplus of about USD 41 billion. India has indicated plans to buy USD 500 billion worth of US goods over the next five years, though economists warn this could affect trade balance. In this context, India’s demand for cheaper gas appears to be part of its negotiating strategy.
Government push to increase gas usage
India is currently the world’s fourth-largest LNG importer. The government aims to raise the share of gas in the country’s energy mix from the current 6% to 15% by 2030. Demand is rising across fertilisers, city gas distribution, refining, and power sectors. However, around 27,000 MW of gas-based power capacity is operating at less than a quarter of its potential due to high gas prices. Affordable LNG is crucial to revive these plants and utilise capacity fully.
Petronet eyeing long-term deals
At present, Petronet LNG mainly imports gas from Qatar and Australia. To secure future supplies, the company is exploring long-term contracts. It is also expanding terminal capacity and developing a new import terminal on the eastern coast to ensure reliable gas supply across the country.