India tops global LNG importers in June 2024

India has surged to become the most active buyer of liquefied natural gas (LNG) globally in June 2024.

The nation imported a record 2.612 million tons of LNG, marking a substantial 45 per cent increase from 1.796 million tons in June 2023, Caliber.Az reports via Russian media.

This import volume represents one of the highest figures in India's LNG trade history, approaching the February 2020 peak of 2.672 million tons, a record influenced by an oversupply of LNG and plummeting global prices during the pandemic.

India's LNG imports for May 2024 were also substantial at 2.654 million tons. The significant rise in June was primarily driven by extreme weather conditions, with temperatures in May and June exceeding seasonal norms, prompting increased energy demand. By July, temperatures in India began to normalize.

In June, India outpaced other major LNG buyers in the region. South Korea's LNG imports grew by 17 per cent, while China’s remained stable with a 1 per cent increase. Meanwhile, Europe reduced its LNG imports by one-third during the same period.

The average import price for LNG in India rose to $423 per thousand cubic meters in June, up from $396 in May. The JKM Platts regional index, which tracks the spot market value for cargoes delivered to Japan, South Korea, China, and Taiwan, also increased to $450 per thousand cubic meters.

The United States emerged as India’s largest LNG supplier in June, contributing 29 per cent of the total shipments with a notable increase of 3.5 times to 752,000 tons. Qatar followed, supplying a quarter of the total imports, or 403,000 tons. Active spot market purchases were also indicated by significant imports from other countries.

India currently operates seven LNG receiving terminals with a combined capacity of 65 billion cubic meters per year (50 million tons). An eighth terminal, with a capacity of 7 billion cubic meters, is anticipated to commence operations by the end of the year.