India Gas Demand Surges on Strong Industrial Growth, US Overtakes Qatar as Top Supplier

India's natural gas consumption rebounded in June 2026, reaching 197 million metric standard cubic metres per day (mmscmd). This growth was driven by a broad-based increase in demand across several key industrial segments, including city gas distribution networks and refineries.

The country's reliance on imports has increased, with LNG imports jumping 13% month-on-month in June. The US has emerged as India's largest supplier for the May-July period, replacing Qatar, which saw a sharp decline in imports of 91% year-on-year.

However, high global LNG prices pose a challenge to the gas sector, with Asian spot prices recently surpassing $20 per million British thermal units (MMBtu). This creates pressure on operating margins for Indian companies, which may struggle to pass on these costs to consumers.