**********India has enormous potential for energy consumption growth

Puri pointed out that although India is one of the world's major exporters of agricultural products, it has long been overshadowed by another major Asian economy in terms of commodity consumption. However, the economic growth after 2020 and the government's large-scale infrastructure investment are driving up India's demand for energy and commodities.

He emphasized that the oversupply in the global natural gas market will lead to a decrease in prices, which will help India increase the proportion of natural gas in its energy structure. At present, natural gas only accounts for 6% of India's energy structure, and the government's goal is to increase it to 15%.

From any perspective, India is a growing economy. "- Indian Minister of Oil and Gas, Hadip Singh Puri

Global energy giants are optimistic about the Indian market

During India Energy Week, several international energy companies reached cooperation agreements with Indian companies. Abu Dhabi National Oil Company (ADNOC) and TotalEnergies SE have signed an agreement to supply liquefied natural gas (LNG) to India.

Indian companies are discussing with the United States to increase LNG imports, and Puri's speech coincides with Indian Prime Minister Modi's visit to the United States. It is expected that the two sides will further cooperate in the energy sector. International energy giants have also expressed optimism towards the Indian market.

In the next 25 years, India's natural gas and LNG markets will experience tremendous growth. "- Andrew Barry, Vice President of LNG Markets at ExxonMobil

The European market is experiencing sluggish growth, while India is a completely different story. "- Russell Hardy, CEO of Vitol Group (the world's largest commodity trader)

Tax reform is expected to boost India's natural gas demand

Puri also revealed that India is pushing for the long stalled natural gas tax reform. Since the implementation of the National Goods and Services Tax (GST) in India in 2017, natural gas has not been included in the unified tax system, resulting in additional local taxes for cross state transactions.

For example, when a batch of LNG lands at the port of Gujarat on the west coast of India and is transported to densely populated areas in the north and east, taxes and fees may reach as high as 40%, thereby suppressing demand. However, the attitude of Indian state governments towards reform has changed. Puri said, "It's only a matter of time before state governments express their willingness to push for tax reform

Edit viewpoint

The sustained growth of the Indian economy is driving greater energy consumption demand, especially in the context of the government's strong investment in infrastructure, highlighting the potential of the natural gas market. In the future, if global LNG prices continue to decline and India advances tax reforms, India's natural gas demand is expected to experience explosive growth. For global energy companies and commodity traders, the strategic position of the Indian market is increasing and may become an important growth point for international energy trading in the coming years.