Archive · 31 Aug 2026
India’s LNG Demand Holds Firm as Prices Threaten Margins
India is continuing to use a lot of LNG, even though it has become expensive.
LNG made up 59% of India’s gas use in July 2026.
This was higher than the 44% share recorded in April.
India’s own gas production has not increased, so it needs to buy more gas from abroad.
Problems affecting gas supplies from the Middle East could keep global supplies tight.
Europe and Asia may compete for LNG from the United States during winter.
This competition could keep spot prices high.
Equirus expects Indian companies to face higher costs and smaller margins before LNG demand falls sharply.
India’s LNG imports reached 59% of total gas consumption in July 2026.
LNG’s share of consumption rose from 44% in April to its highest level since July 2021.
Flat domestic gas production leaves India exposed to elevated spot LNG prices.
A prolonged Middle Eastern supply disruption could delay global LNG market easing until 2027.
High gas costs may compress downstream margins before significantly reducing LNG volumes.
- Who
- India, its downstream gas companies, Equirus, and global LNG suppliers.
- What
- India’s LNG demand remains resilient despite high spot prices, while rising costs may pressure downstream margins.
- When
- The data covers July 2026; higher prices may emerge from September and persist through winter.
- Where
- India and the global LNG market, particularly supply flows from the Middle East and the United States.
- Why
- Flat domestic gas production and possible prolonged Middle Eastern supply disruptions are increasing India’s reliance on costly imported LNG.
- LNG share of Indian gas consumption
- 59% in July 2026
- April 2026 LNG share
- 44%, meaning the share rose by 15 percentage points by July
- Previous comparable high
- 65% in July 2021
- Recent spot-price level
- Above $20 per million British thermal units
- Expected non-Middle Eastern supply growth
- Around 40 million tonnes year-on-year in 2026
- Potential prolonged-disruption outcome
- Global LNG trade could contract by roughly 27 million tonnes
- Expected market easing
- Supply conditions may not ease until 2027