Bilateral trade in LNG is being looked at as India and Qatar eye to boost bilateral trade

Doha is the India's largest supplier of liquefied natural gas (LNG), that India imports in large quantities, fueling the trade relationship between India and Qatar. Super-chilled gas, or LNG, is expected to be crucial to the two nations' current goal of doubling bilateral trade over the next five years.

The reason is that India's natural gas consumption is predicted to increase dramatically over the next five years, which will lead to a surge in LNG imports. Qatar would increase its LNG export capacity at the same time as the anticipated increase in imports. In actuality, the two main regions most likely to witness a significant increase in LNG export capacity in the upcoming years are Qatar and the US, and Indian oil and Gas.

In the field of energy, India and Qatar have a very active collaboration. One of India's main suppliers of LNG is Qatar. Speaking to reporters on Tuesday, February 18, MEA Secretary (Consular, Passport & Visa and Overseas Indian Affairs) Arun Kumar Chatterjee said, “The two leaders also talked about ways to further strengthen and expand the energy partnership, including exploring mutual investments.”

Growth in Qatar's export potential and India's LNG imports

There is a sharp rise in the imports of LNG’s for the coming years as a result of the Indian government's aim to raise the proportion of natural gas in the nation's primary energy mix from 6% to 15% by 2030.

India got the fourth position as the largest LNG importer in the world in the year 2024 by its LNG imports which risen by 70% between 2013 and 2023 to reached up to 36 bcm, which matched the previous record set in 2020. By 2030, it is now anticipated that India's demand for LNG will have increased steadily to 64 bcm/yr.

In the coming year 2023–2030 framework, which gives an assumption to an average growth rate of 11% annually, which is almost the double of the average rate seen over the preceding decade, according to a recent report from the IEA.

Long term contracts were signed by Indian oil and gas companies worth billions of dollars by public sector refiners Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) with the Abu Dhabi National Oil Company (ADNOC), and Gujarat State Petroleum Corporation’s (GSPC) deal with French major Total Energies.