Indian Natural Gas Prices Gain on Smaller Storage Build and Stronger Demand
Natural gas prices in India have edged higher due to a smaller-than-expected storage build and stronger demand forecasts. The prices settled at ₹264.6, up 0.68%, supported by these factors.
According to the U.S. Energy Information Administration (EIA), natural gas storage increased by 28 billion cubic feet during the week ended July 24, below market expectations of a 35 bcf injection. This suggests that supply conditions remain adequate despite stronger seasonal demand.
Weather forecasts indicate above-normal temperatures expected through August 13, boosting electricity demand for air conditioning and increasing gas consumption by power utilities. Average gas demand across the Lower 48 states is projected to rise from 110.6 billion cubic feet per day this week to 112.7 bcfd next week.
The EIA forecasts U.S. dry gas production to average 111.2 bcfd in 2026 and 115.3 bcfd in 2027, while LNG exports are expected to increase to 17.4 bcfd and 18.6 bcfd, respectively. However, record domestic production and lower LNG export flows have capped gains.