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India’s largest liquefied natural gas importer says price and contract flexibility will determine whether the country commits to long-term U.S. gas supply deals, even as Washington pushes New Delhi to boost energy purchases under an interim trade agreement, Bloomberg writes.
Petronet LNG executives say India’s gas market is highly price sensitive, with buyers favoring Brent-linked contracts over U.S. supplies tied to the more volatile Henry Hub benchmark. Higher shipping costs, logistical risks and rigid take-or-pay contract terms have also made U.S. LNG less attractive.
While the U.S. is currently India’s third-largest LNG supplier, demand could rise sharply as India works to more than double the share of natural gas in its energy mix by the end of the decade.
For U.S. producers, India represents a major growth opportunity as new export capacity comes online.
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