India Faces Higher LNG Prices as Gas Costs Squeeze Margins

India's LNG demand remains strong despite high spot prices, but rising gas costs could squeeze margins for downstream players. According to a report by Equirus, India may see higher LNG prices from September.

The country'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.

With domestic gas production remaining flat, India remains highly exposed to elevated spot LNG prices. Globally, the LNG exports outside the Middle East were expected to rise by around 40 mt year-on-year in 2026, driven by new and ramping-up projects, particularly in the US.