Daily Energy Report

India’s gas demand & LNG imports, OPEC+ rejects oil bears, Europe’s worrisome gas dependence, China to build Saudi pipelines, California power delusions, US solar panel glut, and more.

Chart of the Day: India’s LNG Imports

Reuters: Scorching Heat Drives India’s Gas-Fired Power Use to Multi-Year Highs

Summary

India's gas-fired power generation has surged due to intense heat and strategic policy decisions, doubling output to 8.9 billion kilowatt-hours in April and May. This surge is impacting the dominance of coal in the power sector, with coal’s share dipping slightly as gas shares have nearly doubled. An emergency clause during the federal elections also necessitated the use of idle gas plants to prevent outages. Consequently, LNG imports have soared.

Figure (1) above shows India’s LNG imports by source. LNG imports have increased to their highest levels since 2020 where in some months, LNG imports were at a record high. While Qatar gets the lion’s share, the US and the UAE are among the top exporters. 

EOA’s Main Takeaway

This story is important on several fronts: