The Indian Oil Corporation (IOC) has issued a tender seeking one cargo of liquefied natural gas (LNG) for delivery to its Dharma terminal on the country’s east coast. The terminal has a capacity of 5 million tonnes per annum (MTPA) and the tender is said to be the first for the terminal located in the eastern state of Odisha. The move is in line with India’s aim to increase its LNG imports to reduce its reliance on coal and oil for energy production. The Indian government has set a target of increasing the share of natural gas in the country’s energy mix from 6% to 15% by 2030.
India is the world’s fourth-largest LNG importer and has been increasing its LNG imports in recent years due to rising demand for cleaner energy. The country’s LNG imports grew by 11% in the fiscal year 2020-21, and India is expected to become the world’s third-largest LNG importer by 2025.
The Dharma LNG terminal was commissioned in 2020 and has been receiving cargoes from Qatar under a long-term agreement. IOC is one of the largest oil refining and marketing companies in India, with a refining capacity of 80.7 million tonnes per annum. The company is also involved in the production of petrochemicals, lube oils, and other products.
India’s increasing demand for LNG presents opportunities for global LNG suppliers. Qatar is currently India’s largest LNG supplier, accounting for over 50% of India’s LNG imports. Other countries, such as the United States, Russia, and Australia, have also been increasing their LNG exports to India in recent years.