India’s ambition to raise the share of natural gas in its primary energy mix to 15 per cent by 2030 will hinge less on infrastructure and more on affordable LNG pricing, according to A K Singh, MD & CEO, Petronet LNG, speaking at India Energy Week 2026 on Wednesday.
Singh said that India currently consumes around 25–27 million tonnes of LNG annually, meeting roughly 50 per cent of its gas needs through imports. However, achieving the government’s 15 per cent target would require LNG imports to cross 100 million tonnes per annum, nearly a four-fold increase from current levels.
“India is not constrained by infrastructure anymore,” Singh said, pointing out that the country has 52.5 MMTPA of regasification capacity, currently operating at only about 50 per cent utilisation. Over the next three to four years, another 20 MMTPA of capacity is expected to be added, alongside nationwide pipeline and city gas network expansion. Overall, Singh estimated nearly $60 billion is being invested across gas infrastructure.
The real bottleneck, he stressed, is price volatility. “The unprecedented spike to nearly $80 per MMBtu during Covid and the Ukraine crisis severely damaged consumer confidence,” Singh said, adding that volatility hurts producers, suppliers and consumers alike.
With 160–180 MTPA of new LNG supply expected globally over the next three years, led by the US, Qatar and Canada. Singh expressed optimism that prices would stabilise. For India’s gas-based power plants, affordability is decisive. The country already has 27 GW of installed gas-based power capacity, capable of consuming over 25 MTPA of LNG, but utilisation remains below 25 per cent due to high fuel costs.
Pressed on a price benchmark, Singh suggested that LNG in the range of $6–7 per MMBtu could meaningfully revive gas use in the power sector, particularly against liquid fuels. Beyond power, Singh highlighted major growth opportunities in transport and city gas distribution (CGD).
Converting just 450,000 long-haul trucks to LNG could alone create demand of 10-12 MTPA, while CGD expansion can displace diesel, furnace oil and LPG. On contracting strategy, Singh underlined the importance of security of supply.
“Long-term contracts saved India during recent crises,” he said, advocating a 60-70 per cent long-term and 30-40 per cent spot/short-term mix to balance reliability and flexibility.
