India asking US, Iraq, Saudi Arabia, UAE to increase LNG supplies

India has reportedly reached out to Iraq, Saudi Arabia, UAE, and the US to secure liquified natural gas (LNG) at affordable prices, Report informs referring to the Business Standard.

The decision comes as LNG supplies from Russia’s Gazprom have been declining, according to a report in Mint.

In 2018, Gazprom Marketing and Trading Singapore (GMTS), a subsidiary of Gazprom, signed a pact with the Gas Authority of India Ltd (GAIL) to supply 2.5 million tons of LNG for 20 years.

But since the start of the war in Ukraine, the supplies from GMTS have been dwindling.

India’s consumption of LNG has been rising on the back of the Centre's decision to diversify its energy sourcing.

Currently, gas comprises 6.2 percent of India’s energy needs. The government is planning to take it up to 15 percent by 2030, Mint added.

India is also largely dependent on imports for meeting its oil and gas needs. Eighty-five percent of the local oil demand and 55 percent of the local gas demand is met by imports in India.

A government spokesperson was quoted by Mint as saying that the center is trying to acquire gas from wherever possible at "best-suited prices".

"As of now, availability of gas is not an issue, only the price is. Today, gas is available everywhere, including in the UAE and US. We are trying to negotiate to get a good deal wherein we can get gas at an affordable price. We are looking at Saudi Arabia, the US, UAE and Iraq," another official said.

The report further added that India may not pursue arbitration against Gazprom but may deal with the issue bilaterally "at the highest level of the Indian government".