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Date: Wed, 10 Sep 2025 21:43:47 GMT
Subject: Gas to Power Weekly - 5 September - India builds out LNG terminals to double gas-burn by 2030; Shale gale set for growth beyond the US
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Email from Gas to Power Journal Our weekly update covering everything you need to know about Natural Gas Power Generation LEAD ARTICLE India builds out LNG terminals to double gas-burn by 2030 The Indian government aims to expand LNG import capacity to 66.7 mtpa by 2030 – a 27% rise from the current 52.7 mtpa – thanks to two projected regas terminals. The build-out aligns with government policies to more than double the share of gas in the national power gen mix to 15% by the end of the decade. Though the government did not name the developers, the most likely sites for regas capacity build-out are Adani’s Gangavaram Port in Andhra Pradesh (pictured) and Ennore in Tamil Nadu. DOWNLOAD NOW << R E G U L A T I O N National Gas warns Ofgem’s funding cuts raises blackout risk   D E M A N D Global electricity demand to rise 3.7% in 2026; IEA forecasts   L N G - F U E L L E D P O W E R Adriatic LNG’s Open Season reinforces gas-fired power gen in Italy   P R O J E C T S Kuwait opens bidding for 1.8 GW Al Khairan power & water project JEA moves ahead on $1.57bn CCGT to replace Northside coal unit     Global electricity demand to rise 3.7% in 2026; IEA forecasts Despite slowing economic growth, the world’s electricity demand is on course to rise by 3.3% this year and 3.7% in 2026 – more than twice as fast as total energy demand growth over the same period. According to the International Energy Agency (IEA), growth is driven by rising demand from industry, appliances, cooling, data centres and electrification. Growth forecast have been revised downward slightly in response to the IMF's downgrade of the global GDP growth outlook. In February, the IEA had anticipated 4% growth for this year and 3.8% in 2026. Despite these downside risks, strong demand increases from industries, air conditioning (AC) and data centres, as well as significant strides in electrification, analysts pointed. Overall, global electricity consumption is forecast to reach a new high of over 29,000 terawatt-hours (TWh) in 2026. AI investment accelerates In the US, electricity demand growth is accelerating fast due to expanding data centers, while China and India are expected to see “moderate growth rates” this year. Data centers in the US consumed around 180 TWh of electricity in 2024, according to the IEA’s Energy and AI report. Investment in AI gathers speed with companies such as Meta, Amazon, Alphabet and Microsoft committing to spend $320 billion in 2025, up from $230 billion the previous year. Data centre electricity demand is expected to steadily rise through 2030, with consumption projected to increase by approximately 240 TWh, relative to pre-year levels. Weather risk, is driving electricity demand in China: Latest data shows that peak load hit new record-highs three times by mid-July 2025, reaching 1 506 GW, as summer temperatures in most parts of the country were above the same period last year. India reigns in peak load growth In India, the impact of global economic uncertainty on manufacturing and cooler summer temperatures had limited electricity demand growth to 1.4% in the first half of this year. Yet, demand is forecast to pick up fast: Peak load in India could reach 270 GW, up 8% year-on-year, and shift to September instead of summer this year, the Ministry of Power forecasts. To manage peak load growth, the Indian government is implementing air conditioning (AC) standards. They would cap temperature settings between 20ºC and 28ºC, potentially reducing peak load by up to 60 GW in 2035. In the European Union, electricity staged a modest rebound in 2024 following two consecutive years of significant decline. Going forward, EU power demand will keep rising albeit at a more moderate pace as the industrial sector has still yet to recover. Manufacturing activity in the euro zone has shown signs of stabilisation: Aluminium production recovered in output, while crude steel fell by 3.3% yoy in the first half of this year. Considering EU industrial electricity demand had contracted by about 6% in 2022 and 2023, hence “a return to 2021 levels is not anticipated within our outlook period,” analyst cautioned. Enjoyed your free read? Consider a trial subscription     Follow us on social media Gas to Power Journal | 39-41 North Road | London, N79DP GB Unsubscribe | Update Profile | Constant Contact Data Notice
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<p style="margin: 0;"><span style="font-size: 16px; color: rgb(8, 40, 206); font-weight: bold;">LEAD ARTICLE</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 18px; color: rgb(128, 126, 131); font-weight: bold;">India builds out LNG terminals to double gas-burn by 2030</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-weight: bold; color: rgb(128, 126, 131);">The Indian government aims to expand LNG import capacity to 66.7 mtpa by 2030 – a 27% rise from the current 52.7 mtpa – thanks to two projected regas terminals. The build-out aligns with government policies to more than double the share of gas in the national power gen mix to 15% by the end of the decade. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Though the government did not name the developers, the most likely sites for regas capacity build-out are Adani’s Gangavaram Port in Andhra Pradesh (pictured) and Ennore in Tamil Nadu. </span></p>
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<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131); font-weight: bold;">R E G U L A T I O N</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">National Gas warns </span></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">Ofgem’s funding cuts </span></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">raises blackout risk</span></p>
</td> </tr> </table> <div class="spacer" style="line-height: 10px; height: 10px;"> </div> <table class="text text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; line-height: 1.2; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top">
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131); font-weight: bold;">D E M A N D </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">Global electricity demand to rise 3.7% in 2026; IEA forecasts</span></p>
</td> </tr> </table> <div class="spacer" style="line-height: 10px; height: 10px;"> </div> <table class="text text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; line-height: 1.2; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top">
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131); font-weight: bold;">L N G - F U E L L E D P O W E R</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">Adriatic LNG’s Open Season reinforces gas-fired power gen in Italy</span></p>
</td> </tr> </table> <div class="spacer" style="line-height: 10px; height: 10px;"> </div> <table class="text text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; line-height: 1.2; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top">
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131); font-weight: bold;">P R O J E C T S</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">Kuwait opens bidding for 1.8 GW Al Khairan power & water project</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">JEA moves ahead on </span></p>
<p style="margin: 0;"><span style="font-size: 16px; color: rgb(128, 126, 131);">$1.57bn CCGT to replace Northside coal unit </span></p>
</td> </tr> </table> <div class="spacer" style="line-height: 10px; height: 10px;"> </div> <table class="text text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; line-height: 1.2; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top"><p style="margin: 0;"><br></p></td> </tr> </table> <div class="spacer" style="line-height: 10px; height: 10px;"> </div> <table class="text text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; line-height: 1.2; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top"><p style="margin: 0;"><br></p></td> </tr> </table> </td> <td class="column column--2 scale stack" style="width: 65%;" align="center" valign="top"> <table class="text text--article text--padding-vertical" width="100%" border="0" cellpadding="0" cellspacing="0" style="table-layout: fixed;"> <tr> <td class="text_content-cell content-padding-horizontal" style="line-height: 1.2; text-align: left; font-family: Arial,Verdana,Helvetica,sans-serif; color: #403F42; font-size: 14px; display: block; word-wrap: break-word; padding: 10px 20px;" align="left" valign="top">
<p style="margin: 0;"><span style="font-size: 18px; color: rgb(128, 126, 131); font-weight: bold;">Global electricity demand to rise 3.7% in 2026; IEA forecasts</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-weight: bold;">Despite slowing economic growth, the world’s electricity demand is on course to rise by 3.3% this year and 3.7% in 2026 – more than twice as fast as total energy demand growth over the same period. According to the International Energy Agency (IEA), growth is driven by rising demand from industry, appliances, cooling, data centres and electrification.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Growth forecast have been revised downward slightly in response to the IMF's downgrade of the global GDP growth outlook. In February, the IEA had anticipated 4% growth for this year and 3.8% in 2026. </span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Despite these downside risks, strong demand increases from industries, air conditioning (AC) and data centres, as well as significant strides in electrification, analysts pointed. Overall, global electricity consumption is forecast to reach a new high of over 29,000 terawatt-hours (TWh) in 2026.</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-weight: bold;">AI investment accelerates</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">In the US, electricity demand growth is accelerating fast due to expanding data centers, while China and India are expected to see “moderate growth rates” this year. Data centers in the US consumed around 180 TWh of electricity in 2024, according to the IEA’s Energy and AI report. </span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Investment in AI gathers speed with companies such as Meta, Amazon, Alphabet and Microsoft committing to spend $320 billion in 2025, up from $230 billion the previous year. Data centre electricity demand is expected to steadily rise through 2030, with consumption projected to increase by approximately 240 TWh, relative to pre-year levels.</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Weather risk, is driving electricity demand in China: Latest data shows that peak load hit new record-highs three times by mid-July 2025, reaching 1 506 GW, as summer temperatures in most parts of the country were above the same period last year. </span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-weight: bold;">India reigns in peak load growth</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">In India, the impact of global economic uncertainty on manufacturing and cooler summer temperatures had limited electricity demand growth to 1.4% in the first half of this year. Yet, demand is forecast to pick up fast: Peak load in India could reach 270 GW, up 8% year-on-year, and shift to September instead of summer this year, the Ministry of Power forecasts. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">To manage peak load growth, the Indian government is implementing air conditioning (AC) standards. They would cap temperature settings between 20ºC and 28ºC, potentially reducing peak load by up to 60 GW in 2035.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">In the European Union, electricity staged a modest rebound in 2024 following two consecutive years of significant decline. Going forward, EU power demand will keep rising albeit at a more moderate pace as the industrial sector has still yet to recover. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Manufacturing activity in the euro zone has shown signs of stabilisation: Aluminium production recovered in output, while crude steel fell by 3.3% yoy in the first half of this year. Considering EU industrial electricity demand had contracted by about 6% in 2022 and 2023, hence “a return to 2021 levels is not anticipated within our outlook period,” analyst cautioned.</span></p>
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