Expanding Horizons of Liquefied Natural Gas-LNG on India’s Energy Landscape

Abstract

India’s economy has undergone dramatic transformation since a range of structural reforms were undertaken in
the 1990s. These reforms included opening the economy to more international trade and investment, abolishing industrial
licensing, floating the exchange rate, and increasing domestic and foreign private participation in financial markets. The
reform process has stimulated strong economic growth in India. The expansion in economic output, supported by a large and
growing population, has led to a strong rise in energy consumption in India. Primary energy consumption (excluding
combustible renewable and waste) has increased at an average annual rate of nearly 7.0 % since 1990, and India now ranks
fifth in the world in terms of energy consumption. India’s energy mix is currently dominated by coal and oil, although the
role of natural gas has been steadily increasing. Consumption of natural gas in India has the potential to rise dramatically,
on the basis of robust economic growth, an expanding population and recent large domestic gas discoveries. So, what can
mitigate this effect? The answer is new natural gas supply and its reliable transportation to consuming markets. Although the
answer appears simple, the process of getting to a viable solution requires intensive study of supply alternatives.
Ofcouse,One source is liquefied natural gas, or LNG.