Wednesday 8 February 2023
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EconomyHuge opportunity to export LNG to India, China: IEA chief

Huge opportunity to export LNG to India, China: IEA chief

Washington: There is a huge opportunity for the US to LNG to India and China in the next five years as they push to replace coal, the head of the International Agency has said as he highlighted the growing importance of the two nations in the energy market.

Fatih Birol, executive director for the agency, said both India and China use gas at a minimum level.

Globally, the share of gas in the global mix is about 25%, and in both these countries, it is less than or around 5% only.

“So, there’s a big gap between the world average and them,” Birol told US lawmakers during a hearing on domestic and global outlook held by Senate Committee on Energy and natural Resources.

“And both of them are facing major challenges in terms of environment, namely, local pollution in the cities. And this is an issue for both of these countries and others a reason for social unrest, in fact,” he said, insisting that there is a huge opportunity to Liquefied natural gas (LNG) to India and China in the next five years.

“I am sure Asian region will be the primary destination for the US LNG,” he said.

China, Birol said, will overtake the US as the largest oil consumer around 2030.

“But stringent fuel-efficiency measures for cars and trucks, and a shift which sees one-in-four cars being electric by 2040, means that China is no longer the main driving force behind global oil use demand growth is larger in India post-2025,” he said.

“In fact, India is the largest contributor to demand growth to 2040 almost 30% of total growth as its share of global use rises to 11%,” Birol said.

India, he said, is pushing strongly to replace coal.

“But coal is also growing because, in India, as people having no access to in India,” he said.

India has to build some power plants from coal, but also more and more natural gas, renewable and nuclear, he said.

“India is also very important, because their economic growth is very strong and they have a very, in my view, wise, sound policy,” Birol said.


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