India's gas demand returns to pre-disruption levels, but global LNG competition rises: Equirus
India’s gas consumption increases 7% m-o-m and 2% y-o-y to 197 mmscmd in June
In June 2026, India's natural gas consumption rebounded to near pre-disruption levels, according to a research report by Equirus. Consumption rose 7% month-on-month and 2% year-on-year to 197 million metric standard cubic metres per day (mmscmd) overall. Excluding power demand, the increase was 7% month-on-month and 4% year-on-year, reaching 176 mmscmd.
The growth was driven by imported gas, with LNG consumption surging 13% month-on-month and 10% year-on-year to 110 mmscmd. Domestic gas supply stayed flat at 87 mmscmd, while India's import dependence grew to 56%. The earlier consumption numbers for May and May-July imports were revised upwards, suggesting the recovery was stronger than initially thought.
Broad-based demand growth was observed across city gas distribution, miscellaneous users, and refineries. Refinery consumption increased 2.6 mmscmd to 15 mmscmd, primarily due to a 25% rise in imports. Equirus anticipates July demand to stay strong, though slightly softer than June. India's LNG sourcing has shifted, with the US becoming the largest supplier, followed by Nigeria and Oman, reducing reliance on Qatar.
However, stronger Chinese LNG buying could increase competition for flexible cargoes. While Asian spot LNG prices are above $20, European gas storage remains low. Additional LNG supply could eventually improve availability, but shipping constraints and payment risks will continue to be factors in determining prices for Indian buyers.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
