India plans LNG terminal in Iraq to boost gas imports

Reuters/Alexander Manzyuk

India plans to build a liquefied natural gas (LNG) terminal in Iraq to support its energy security programme.

The terminal will liquify some portion of the gas currently flared by Iraq and transport it to India, Mint, an Indian financial media outlet, said citing an unnamed government official.

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The liquefaction will be converted back to LNG for use in India’s domestic gas distribution, as well as power, fertiliser and steel sectors.

A team from state-run Indian Oil Corporation and Engineers India Limited will soon visit Iraq, the official stated.

“We want to import LNG from Iraq, for which the requisite infrastructure is required. India is willing to set up an LNG terminal for them for liquefaction,” he said.

The official added that India aims to source 50 million metric standard cubic metres per day of gas currently flared by Iraq. 

Flaring is done primarily when gas becomes a by-product of crude oil extraction.

India’s natural gas consumption has increased, with the government focusing on creating a gas-based economy.

Gas makes up 6.2 percent of India’s primary energy mix, far less than the global average of 24 percent. The government is targeting to up its contribution to 15 percent by 2030.

India imports 85 percent of its oil needs and 55 percent of its natural gas demand.