THE RISE OF LNG

LNG is reshaping global energy security and India’s fuel mix could alter for the better

Liquefied Natural Gas (LNG) has become one of the most strategically important commodities in the global energy market, transforming how natural gas is transported and consumed worldwide. By cooling natural gas to nearly −162°C, its volume reduces by almost 600 times, making long-distance transportation economically viable and turning natural gas into a globally traded energy asset.

This transformation is visible in global trade patterns. LNG accounted for only 26% of international natural gas trade in 2000, but now represents nearly 45%, reflecting the emergence of an integrated global gas market. Global LNG trade reached approximately 407 million tonnes in 2024, while long-term demand is projected to rise to 650–710 million tonnes by 2040.LNG

Energy security remains the biggest driver behind LNG growth. Unlike pipeline gas, LNG provides destination flexibility, allowing cargoes to be redirected depending on market conditions and supply shortages. This became especially important after the Russia–Ukraine conflict, which forced Europe to diversify away from Russian gas.

LNG has also emerged as a critical transition fuel. Natural gas emits nearly 50% less carbon dioxide than coal while producing lower sulfur dioxide, nitrogen oxides, and particulate emissions. As a result, LNG is increasingly viewed as the bridge between carbon-intensive fossil fuels and renewable energy systems.