India is planning to expand its import capacity for liquefied natural gas by 12 percent by building a new floating import terminal in the western state of Gujarat.

The terminal is due to become operational next year, Reuters reports, and will bring India’s total LNG import capacity to 47.5 million tons annually.

India last year consumed 25.7 million tons of liquefied natural gas, a 14-percent increase on 2019, according to Wood Mackenzie. Demand is likely to continue to grow in the coming years although there will be constraints related to prices. Just as with oil, India is no fan of expensive commodities, so if the current rally on the spot LNG market persists, Indian buyers’ appetite for the superchilled fuel will likely be dampened, at least temporarily…read more.