LNG

Deutsche Energy Terminal GmbH (DET) increased its contribution to Germany’s security of supply by more than a third in 2025, supported by higher utilization of existing floating LNG terminals and the start‑up of a third unit at Wilhelmshaven. The state‑owned operator said its three FSRUs delivered 79 Terawatt-hours (TWh) of natural gas into the German grid last year, up from 59 TWh in both 2024 and 2023.

Osaka Gas seeks to expand its oversees LNG business via US upstream and power plant investments through subsidiary Sabine Oil&Gas, with Texas shale gas production expected to reach 3.8 mt LNG-equivalent this fiscal year.

Deutsche ReGas, the only privately-financed LNG terminal operator in Germany, has entered agreements with BASF and Equinor for the utilisation of LNG regas capacity at Deutsche Ostsee Energie-Terminal in Mukran. Though commercial terms were not disclosed, the agreements highlight the role of the Mukran terminal in diversified energy supply.

India’s LNG imports are bound to rise amid higher gas-burn in the summer season and Petronet aims to get the expansion of the 17.5 mtpa Dahaj terminal to 22.5 mtpa completed in the next three months, CEO A.K. Singh said. He indicated Petronet aims to maximise the utilisation of this terminal over the summer.

Electric power generators across India have already been asked by the government to operate underutilised gas-fuelled plant at a higher capacity between May 26 and June 30.

Rain and cooler temperatures have subdued gas demand over the past few weeks but electricity demand is forecast to rise starkly as the summer season approaches. "We expect LNG demand to rise similar to last year's levels. Demand for power is rising in last few days so we are expecting demand for LNG to rise in the third or fourth week of May and in June," the Petronet CEO said.

Dispatch of gas-fuelled power plants has been more expensive than those running on thermal coal, solar or wind energy which results in three-fifth of all gas power stations standing idle. These plants tend to be primarily used for gas peaking power.

Yet the narrowing spread between spot and longterm LNG prices is incentivising buyers like Petronet to step up purchasing, Sing said, indicating Indian offtakers prefer LNG prices at below $10 per million British thermal units. At this level gas-burn for power generation starts to become economic.

Near-fixed price LNG offtake

For long, Petronet used to purchase US LNG at a near-fixed price. In September 2019, it signed a $7.5 billion agreement with Tellurian to take a stake in Driftwood LNG and import 5 mtpa. For American LNG vendors, selling LNG directly to Indian customers is difficult given that utility customers are hesitant to lock in long-term offtake agreements due to a high risk of price volatility at wholesale power markets.

Prime Minister Narenda Modi is pushing to turn India into a gas-based economy, aiming to boost the use of gas from 6.2% to 15% by 2030. To achieve this goal, the PM has set out measures to double city gas networks to 400 districts, set up an independent gas transmission system operator and a trading exchange to allow for transparent operations of pipelines and price discovery.

“Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi's goal of a $5 trillion economy," noted Tellurian president and CEO Meg Gentle.

Greater utilisation of India’s fleet of gas-fired power plants could accelerate LNG imports to bridge the gap left by marginal domestic gas production increases, the International Energy Agency (IEA) finds. Supportive policies by the Indian government could tilt the national power gen mix more towards cleaner-burning natural gas and hydrogen in the coming years.