India Braces for Higher LNG Prices Amid Global Supply Chain Disruptions

India's Liquefied Natural Gas (LNG) demand remains firm despite high spot prices, but rising gas costs could squeeze margins for downstream players.

A report by Equirus notes that India may see higher LNG prices from September due to the ongoing global supply chain disruptions.

The country's reliance on imports has increased, with LNG accounting for 59% of total gas consumption in July 2026, the highest share since July 2021.

Globally, the report expects a net contraction of about 5 mt in global LNG exports due to Middle Eastern export declines, despite new projects coming online in the US and elsewhere.

This could lead to elevated spot prices through winter, intensifying competition between Europe and Asia for flexible US LNG.