India Faces Higher LNG Prices Amid Global Supply Disruptions

India's liquefied natural gas (LNG) demand remains robust despite high spot prices, but rising gas costs could squeeze margins for downstream players. According to a report by Equirus, India's LNG imports accounted for 59% of total gas consumption in July 2026, the highest share since July 2021, when it stood at 65%. The share has also risen by 15 percentage points from 44% in April 2026.

The report notes that global LNG supply disruption is expected to continue, with Middle Eastern exports declining by more than 65 mt compared to only around 40 mt of incremental supply from the rest of the world. This could lead to a net contraction of about 27 mt in global LNG exports and delay anticipated easing in supply conditions until 2027.

For India, recent gas consumption and import data indicate that LNG demand has remained resilient even at spot prices above $20/mmbtu. Equirus notes that near-term adjustment may likely occur through higher gas costs and margin compression across downstream players, rather than an immediate sharp decline in volumes.