India's Gas Demand Recovers but Global LNG Competition Rises

India's natural gas consumption rebounded to near pre-disruption levels in June 2026, with demand growth observed across various sectors. According to a research report by Equirus, India's gas consumption increased by 7% month-on-month and 2% year-on-year to 197 million metric standard cubic metres per day (mmscmd) in June.

The rise was entirely driven by imported gas, with LNG consumption rising 13% month-on-month and 10% year-on-year to 110 mmscmd. Domestic gas supply remained flat at 87 mmscmd and declined 8% year-on-year, taking India's import dependence to 56%. Equirus noted that May consumption was revised significantly higher to 184 mmscmd from the earlier 169 mmscmd.

The demand growth in June was broad-based, led by city gas distribution (CGD), miscellaneous users, and refineries. CGD consumption increased 2.3 mmscmd month-on-month to 58 mmscmd, while miscellaneous demand rose 3.9 mmscmd to 41 mmscmd.

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.