Overview
India added 52.5 million tonnes per annum (mtpa) of regasification capacity across eight terminals in 2025. This pushes the country ahead of Spain to become the fourth‑largest market for LNG regasification worldwide, according to the IGU World LNG Report.
Key Developments (2025‑2028)
- Commissioning of two projects in 2025: Chhara LNG (new on‑shore terminal, 5 mtpa) and expansion of Dabhol LNG (capacity raised from 2.9 mtpa to 5 mtpa) after breakwater completion.
- Four LNG projects under construction: one new terminal and three expansions, including the enlargement of Dahej LNG. These will add 11.3 mtpa by 2028.
- Utilisation of regasification fell to about 47 % in 2025 from 58 % in 2024, reflecting higher capacity and weaker summer imports.
Important Facts
- Dahej LNG (17.5 mtpa) is the only ultra‑large terminal in India and ranks sixth globally.
- The other seven terminals belong to the large‑scale category, each with 5 mtpa capacity.
- Asia added the most new LNG regasification capacity in 2025: China (15.1 mtpa) and India (7.1 mtpa), together accounting for 35.3 % of global additions.
- Despite capacity growth, Asia’s total LNG imports fell by 9.2 mt to 108.7 mt, driven by lower intake in China and India.
- According to the IEA, India’s natural gas consumption is projected to rise by nearly 60 % by 2030, spurred by city gas distribution, industrial demand, and power generation.
Exam Relevance
The expansion of LNG infrastructure ties directly to GS‑3 topics such as energy security, diversification of the energy mix, and the role of natural gas in meeting climate commitments. Understanding the scale of projects like city gas distribution helps answer questions on urban energy supply and industrial policy. The shift in utilisation rates also illustrates the impact of seasonal import patterns and capacity planning, useful for questions on infrastructure management.
Way Forward
- Complete the four under‑construction projects to achieve the targeted 11.3 mtpa addition by 2028.
- Enhance year‑round import reliability by mitigating monsoon‑related disruptions, as demonstrated by the Dabhol breakwater.
- Align LNG expansion with renewable energy goals to ensure a balanced, low‑carbon energy basket.
- Monitor utilisation trends to avoid over‑capacity and ensure economic viability of new terminals.