Petronet LNG, India’s largest gas importer, has announced that it is considering increasing its purchases of liquefied natural gas (LNG) from the United States, contingent on the price being reasonable. The CEO of Petronet highlighted that India is exploring options to boost imports from Washington to meet its energy needs, especially as the country works on expanding its gas-based power generation capacity.

This announcement comes on the heels of major trade developments, particularly after US President Donald Trump cut import duties on Indian goods from 50% to 18%. In response to this reduction, Washington has expressed expectations for India to more than double its annual imports from the US, aiming for a stronger bilateral trade relationship. The bilateral trade between India and the US amounted to $132 billion in 2024-25, with India enjoying a trade surplus of about $41 billion.

India has around 27,000 megawatts of gas-based power generation capacity, but due to a shortage of affordable gas, these plants are currently operating at less than a quarter of their capacity. The Indian government is looking to increase the share of gas in its energy mix by 2030, making the possibility of importing LNG from the US more significant for its energy strategy and economic growth.