US Emerges as the Second Largest Supplier of LNG to India 

Analysis and Crucial Points of International LNG Trade and Energy Transition

Introduction and Snapshot 

- The US has risen as India's second-largest supplier of Liquefied Natural Gas (LNG) by 2023, beating the UAE, accounting for 3.09 million tonnes (MT).

- This shift showcases the evolving trade dynamics in the international energy markets and India's pursuit of diversified energy sources.

Why in News and Current Global Scenario 

- The rise of the US as a significant LNG supplier to India coincided with the country emerging as the world's largest LNG exporter in 2023.

- This achievement is owing to extensive investments made in liquefaction capacity, resulting in the strong growth of the US in the LNG market.

- It overtook prior leaders Qatar and Australia in the global LNG supply chain.

The Role and Importance of LNG 

- The historical shift towards LNG as an alternative fuel represents the ongoing global transition to green and renewable energy sources.

- LNG is natural gas supercooled to become a liquid, reducing its volume making it easier and economical to transport over long distances.

- Primarily composed of methane, LNG converts back to gas at its destination, and it's used like conventional natural gas for heating, electricity generation, and fuel for vehicles.

Evolving Trade Dynamics 

- The fluctuations in global LNG prices and India's geographical proximity to the US via the Cape of Good Hope facilitate the increased supply of US-sourced LNG.

- In contrast to the rising share of the US, African nations witness a decline in their share of India's LNG imports.

- Qatar has been India's largest LNG supplier over the last five years, despite shifts in other supplier nations' standings.

Future Perspective and GK Insights 

- India being the fourth-largest LNG importer, witnessed a scaling back in 2022 due to the surge in prices and a decrease in shipments from the US.

- The UAE's LNG export to India has also exhibited fluctuations, with an increase from 2.6 MT in 2019 to 3.32 MT in 2020 and a subsequent decline.

- In the light of these developments, it's essential for countries to predict and adapt to substantial shifts in the LNG market and global energy resources.

In conclusion, the rise of the US as the second-largest LNG supplier in India signifies the fast-changing patterns of international LNG trade in parallel to the global energy transition and diversification goals. This development also holds potential implications for the global geopolitical scenario, underlining the significance of energy dynamics in international relations.