Greater Noida:
On Day 2 of India Energy Week 2026 in Goa, speakers underscored how India’s energy strategy is being shaped by disciplined price discovery and pragmatic transition pathways. As global LNG supply expands, India is positioning itself as a benchmark-driven swing buyer—selectively accessing spot and short-term cargoes when international price markers align with domestic alternatives—while simultaneously accelerating biofuels adoption to meet transport decarbonisation goals. Together, these dynamics reflect India’s balancing act under the IEW 2026 theme of “Energising Growth, Securing Economies, Enriching Lives,” leveraging transparent gas benchmarks and rapidly scaling ethanol and sustainable aviation fuel to secure affordability, flexibility, and long-term emissions reduction in a volatile global energy landscape.
According to Kenneth Foo, Global Director for LNG price reporting, S&P Global Energy, “As global LNG supply growth accelerates, India is increasingly a benchmark-driven swing buyer, stepping into the spot or short-term markets during dislocations between WIM vs Henry Hub vs Brent linked-pricing. India imported just under 26 mtpa of LNG in 2025. An additional 3.5–4 mtpa of long-term contracted volumes is set to start delivering from 2026. Higher term supply leaves limited scope for spot LNG in 2026, especially if prices remain uncompetitive versus propane, naphtha and fuel oil.”
“Early-2026 pricing briefly made LNG competitive with propane, triggering incremental demand, but this window has narrowed, highlighting India’s high price sensitivity. Furthermore, a low-price JKM and WIM (West India Marker) environment, the weakest since 2021, is accelerating adoption of floating-price LNG structures. WIM is listed on India Gas Exchange (IGX), has underpinned two physical transactions, and is emerging as the primary reference price for RLNG and LNG transactions, with deeper contractual use likely. Uncontracted LNG has a good likelihood of having a WIM reference.”
“With both LNG and crude price outlooks weak– \incremental LNG demand from refineries, CGD and industrial users will depend on LNG being competitive beyond non-LNG priced volumes, increasing reliance on transparent LNG benchmarks like JKM/WIM. Gas-based power demand this summer is a key swing factor. A stronger summer could lift spot demand. WIM has been used in NVVN gas-based power tenders in both 2024 and 2025, reinforcing its role in the Indian power market. A key geopolitical uncertainty remains Russian LNG post-2027, as Yamal volumes may be displaced from Europe due to the upcoming LNG/gas ban; Indian absorption of Russian supply will depend on pricing discounts, benchmark linkages and tolerance for geopolitical risk,” he added.
Sophie Byron, Global Director for Biofuels Price Reporting, S&P Global Energy said, “Decarbonization goals are accelerating interest in Sustainable Aviation Fuel (SAF). India has articulated SAF blending targets of 1% by 2027 (around 45,000 mt), 2% 2026, rising toward 5% by 2030, prompting industry efforts to scale production through multiple pathways, including waste-based and ethanol-to-jet routes, using both crop and non-crop ethanol sources. Current availability focuses on co processed SAF through current refineries, using HEFA pathway and primarily used cooking oil feedstocks. More broadly, SAF policy frameworks are taking shape across Asia with blend targets mostly volumetric, however cost competitiveness, feedstock availability, and regulatory clarity will determine the pace of scale-up.”
“Asia’s biofuels market is entering a decisive growth phase, driven by stronger gasoline blending mandates and renewed policy focus on domestic ethanol production. India has emerged as a regional anchor market, rapidly scaling ethanol capacity, diversifying feedstocks beyond sugar-based routes with a rabid increase in corn or maize based ethanol, and moving close to nationwide E20 gasoline blending, implying annual ethanol demand of over 10 billion Liters and rising.
Across Southeast Asia, Vietnam is preparing for a nationwide E10 rollout, while the Philippines and Indonesia are advancing plans to increase blending beyond current levels, positioning Asia as a structurally growing ethanol demand region, albeit with continued supply and feedstock constraints. Post-2035, Asia ethanol blending rates stabilize as gasoline demand peaks for the region,” she added.
