India-Qatar LNG Trade: Key to Energy Security & Bilateral Growth

India’s LNG imports from Qatar drive bilateral trade, ensuring energy security. Discover key trade dynamics, future growth, and competition with the US

India-Qatar LNG Trade: Key to Energy Security & Bilateral Growth

What’s in Today’s Article?

  • India-Qatar LNG trade Latest News
  • LNG: The Energy Driving India-Qatar Trade
  • Growth in India’s LNG Imports and Qatar’s Expanding Export Capacity
  • The US Factor in India’s LNG Market
  • Conclusion: Energy as a Core Pillar
  • India-Qatar LNG trade FAQs

India-Qatar LNG trade Latest News

  • India-Qatar trade is primarily driven by India’s liquefied natural gas (LNG) imports, with Qatar being its largest supplier. As both nations seek to double bilateral trade in the next five years, LNG is expected to remain a key factor in achieving this goal.
  • During the recent visit of Qatar’s Amir Sheikh Tamim bin Hamad Al-Thani, India and Qatar set a goal to double bilateral trade to $28 billion annually by 2030 and upgraded their ties to a strategic partnership.

LNG: The Energy Driving India-Qatar Trade

  • India’s LNG imports are set to rise over the next five years due to increasing natural gas consumption. 
  • This aligns with Qatar’s plans to expand its LNG export capacity, making it a key supplier alongside the US. 
  • Indian oil and gas companies are exploring both markets to meet growing demand.

Trade Imbalance in Qatar’s Favor

  • Despite India’s efforts to boost exports and attract Qatari investments, the trade balance remains heavily tilted towards Qatar. 
  • LNG is the largest component of India’s imports from Qatar, contributing 50% of total imports, which stood at $11.49 billion in the first 11 months of 2024. 
  • Other major imports include LPG, crude oil, plastics, and petrochemicals, while India’s exports to Qatar were only $1.61 billion during the same period.

Qatar’s Dominance in India’s LNG Imports

  • From January to November 2024, India imported 9.82 million tonnes of LNG from Qatar, making up 38.8% of India’s total LNG imports by volume. 
  • In value terms, Qatar accounted for 41.2% of India’s LNG imports, worth $5.75 billion.

Long-Term LNG Contracts and Future Supply

  • India’s largest LNG importer, Petronet LNG, has a long-term contract with Qatar for 7.5 million tonnes per annum (mtpa) of LNG, recently extended until 2048. 
  • In addition to these contracted volumes, Qatar also plays a significant role in India’s spot LNG market. 
  • In December 2024, GAIL signed a five-year agreement with QatarEnergy for additional LNG supplies, further strengthening the energy partnership between the two nations.

Growth in India’s LNG Imports and Qatar’s Expanding Export Capacity

  • India aims to increase natural gas’s share in its primary energy mix from just over 6% to 15% by 2030. 
  • According to the International Energy Agency (IEA), India’s natural gas consumption is expected to grow nearly 60% from 2023 levels, reaching 103 billion cubic metres (bcm) by 2030.
  • With domestic production meeting only half of the country’s demand, LNG imports are set to rise significantly in the coming years.

India’s Expanding Role in Global LNG Markets

  • Between 2013 and 2023, India’s LNG imports grew by 70%, reaching 36 bcm in 2024, reinforcing its position as the world’s fourth-largest LNG importer. 
  • The IEA projects India’s LNG demand to grow at an annual rate of 11% until 2030, prompting Indian oil and gas companies to secure long-term supply contracts. 
  • Recently, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Gujarat State Petroleum Corporation (GSPC) signed major LNG import agreements with global energy firms.

Qatar’s Expanding LNG Export Capacity

  • As India’s LNG imports surge, Qatar is set to almost double its liquefaction capacity from 77 mtpa to 142 mtpa by 2027. 
  • This expansion could further solidify Qatar’s position as India’s leading LNG supplier, ensuring long-term energy security for both nations.

The US Factor in India’s LNG Market

  • The United States, the world’s largest LNG exporter, is emerging as Qatar’s biggest competitor in India’s LNG market. 
  • In January-November 2024, India imported 5.12 million tonnes of LNG from the US, accounting for 20.2% of total LNG imports, valued at nearly $2.5 billion.

US-India Energy Partnership

  • New Delhi and Washington have agreed to enhance US energy exports to India, aiming to position the US as a leading supplier of oil and gas. 
  • This initiative could also help reduce the trade deficit between the two nations.

US LNG Export Policy and India’s Interest

  • With US President Donald Trump lifting the Biden-era ban on new LNG export permits, Washington is expected to strengthen its dominance in the global LNG market. 
  • Indian oil and gas companies are actively exploring long-term LNG contracts with US suppliers.

Conclusion: Energy as a Core Pillar

  • Energy remains a central aspect of India-Qatar relations. 
  • Both nations are exploring ways to strengthen and expand their energy partnership, including potential mutual investments, as highlighted in the recent discussions between PM Modi and Al-Thani.

India-Qatar LNG Trade FAQs

Q1. What is LNG used for?

Ans. LNG is primarily used for power generation, industrial applications, and as a cleaner fuel alternative for transportation.

Q2. What is the difference between LNG and LPG?

Ans. LNG is liquefied natural gas, mainly methane, while LPG (liquefied petroleum gas) contains propane and butane, used for cooking and heating.

Q3. Is LNG better than CNG?

Ans. LNG is more energy-dense and better for long-distance transport, while CNG is more suited for short-range vehicle use.

Q4. What does Qatar export to India?

Ans. Qatar exports LNG, LPG, crude oil, petrochemicals, plastics, fertilizers, and aluminum to India.

Q5. What does Qatar buy from India?

Ans. Qatar imports food products, engineering goods, machinery, textiles, chemicals, and pharmaceuticals from India.

Source: IE | DH

Latest UPSC Exam 2025 Updates

Last updated on June, 2025

UPSC Notification 2025 was released on 22nd January 2025.

UPSC Prelims Result 2025 is out now for the CSE held on 25 May 2025.

UPSC Prelims Question Paper 2025 and Unofficial Prelims Answer Key 2025  are available now.

UPSC Calendar 2026 is released on 15th May, 2025.

→ The UPSC Vacancy 2025 were released 1129, out of which 979 were for UPSC CSE and remaining 150 are for UPSC IFoS.

UPSC Mains 2025 will be conducted on 22nd August 2025.

UPSC Prelims 2026 will be conducted on 24th May, 2026 & UPSC Mains 2026 will be conducted on 21st August 2026.

→ The UPSC Selection Process is of 3 stages-Prelims, Mains and Interview.

UPSC Result 2024 is released with latest UPSC Marksheet 2024. Check Now!

UPSC Toppers List 2024 is released now. Shakti Dubey is UPSC AIR 1 2024 Topper.

→ Also check Best IAS Coaching in Delhi

Vajiram Editor
Vajiram Editor
UPSC GS Course 2026
UPSC GS Course 2026
₹1,75,000
Enroll Now
GS Foundation Course 2 Yrs
GS Foundation Course 2 Yrs
₹2,45,000
Enroll Now
UPSC Prelims Test Series
UPSC Prelims Test Series
₹6000
Enroll Now
UPSC Mains Test Series
UPSC Mains Test Series
₹16000
Enroll Now
UPSC Mentorship Program
UPSC Mentorship Program
₹85000
Enroll Now
Enquire Now