New LNG norms raise costs, delay gas future

Experts question mandate to register LNG import terminals

- S DINAKAR

India's new regulations for the $15 billion LNG import business couldn't have come at a worse time for India's LNG stalwarts like state-run Petronet LNG, Shell, Adani-Total, Indian Oil, and Hindustan Petroleum.

For an industry, which, like the software sector, has grown relatively unsupervised for the last two decades, the fresh regulatory oversight adds costs and delays to adding LNG import capacity at a time when imports of the fuel are declining. LNG imports, which account for half of India's gas use, are expected to play a key role in India, which plans to more than double the share of natural gas in the energy mix to 15 per cent by 2030.

Top industry officials questioned the need for the Petroleum & Natural Gas Regulatory Board (PNGRB) to mandate registration of new, expanding and existing LNG import terminals, which receive chilled and liquefied natural gas, regasify the molecules, and transport the cleaner burning fuel via pipelines to fertiliser plants, city gas units, generators and industries.

India's LNG imports have declined this year because of high global prices after a 15 per cent surge year-on-year (Y-o-Y) in 2024-25 (FY25) to 27.7 million tonnes (mt), oil ministry data showed. Imports in Q4FY25 totalled 6.4 mt, 3 per cent lower from 6.6 mt/year a year earlier.