Indian Gas Demand Rebounds, but Global Competition Rises

India's natural gas consumption has rebounded to near pre-disruption levels in June 2026, according to a report by Equirus. The country's broad-based demand growth across key sectors was led by city gas distribution, miscellaneous users, and refineries.

The increase in gas consumption was entirely driven by imported gas, with LNG consumption rising 13 per cent month-on-month and 10 per cent year-on-year to 110 mmscmd. Domestic gas supply remained flat at 87 mmscmd and declined 8 per cent year-on-year, taking India's import dependence to 56 per cent.

Equirus noted that the country imported around 7 million tonnes of LNG during May-July, up 15 per cent year-on-year, with the US emerging as the largest supplier. However, the brokerage firm cautioned that stronger Chinese LNG buying is increasing competition for flexible cargoes and Asian spot LNG prices rose above USD 19 per million British thermal units in July.