India Gas Demand Rebounds, But Import Dependence Looms Large

India's natural gas demand has rebounded to pre-disruption levels in mid-2026, but a closer look at the data reveals structural vulnerabilities. Despite encouraging numbers, India's gas market is layered with import dependency, supplier concentration risk, and global competition dynamics.

The June 2026 consumption figure of 197 million metric standard cubic meters per day (mmscmd) sits approximately 1.4% above the February baseline, but this recovery is not just about demand resilience, it's also about growth. Total gas consumption climbed 7% month-on-month and 2% year-on-year, with non-power consumption growing at a faster pace.

City Gas Distribution (CGD) contributed 58 mmscmd in June, rising 2.3 mmscmd month-on-month, making it the most structurally durable component of India's gas demand system. Industrial and refinery consumption also showed broad-based momentum, with miscellaneous industrial demand climbing 3.9 mmscmd to reach 41 mmscmd.

However, petrochemical gas consumption remains a notable laggard, still below year-ago levels at 7 mmscmd. Furthermore, India's import dependence ratio has reached 56%, as domestic gas production held flat month-on-month while contracting 8% year-on-year. LNG imports surged to 110 mmscmd, absorbing every incremental unit of demand recovery.