The Energy Information Administration, a division within the Energy Department, said economic growth and modernization in India is leading to increased demand for energy.
"India's dependence on imported fossil fuels rose to 38 percent in 2012, despite the country having significant domestic fossil fuel resources," EIA said in a Thursday brief.
The government in April said it expected natural gas demand to more than double by the beginning of the next decade.
According to the terms of a five-year energy plan, the Indian government has said it wants to add at least one transnational pipeline to the midstream sector from either Iran, Oman or Central Asia.
"Because India has not been able to produce an adequate supply of domestic natural gas and has been unable to create sufficient natural gas pipeline infrastructure on a national level, it increasingly relies on imported LNG to meet domestic demand," EIA said.
The administration said that, as of 2012, LNG imports accounted for 29 percent of its annual consumption of 2.1 trillion cubic feet of gas.