Indian Gas Demand Rebounds, but Global Competition Heats Up
India's natural gas consumption has largely recovered to pre-disruption levels, according to a recent report by Equirus. In June, gas demand rose 7% month-on-month and 2% year-over-year to 197 million metric standard cubic meters per day (mmscmd). The increase was driven entirely by imported gas, with LNG consumption rising 13% month-on-month and 10% year-over-year to 110 mmscmd.
Domestic gas supply remained flat at 87 mmscmd and declined 8% year-over-year, increasing India's import dependence to 56%. Equirus expects July demand to remain strong, although slightly softer than June due to lower power consumption. Demand could weaken in August amid lower Morbi-related consumption and seasonal softness.
The country's LNG sourcing has undergone a significant shift, with the US emerging as the largest supplier, followed by Nigeria and Oman, reducing India's immediate dependence on Qatar. However, Equirus cautioned that stronger Chinese LNG buying is increasing competition for flexible cargoes, driving Asian spot LNG prices above $19 per million British thermal units in July.