India's Gas Demand Returns to Pre-Disruption Levels Amid Rising Global Competition

India's natural gas consumption has largely recovered to pre-disruption levels in June 2026, driven by broad-based demand growth across key sectors. The country's gas demand increased 7% month-on-month and 2% year-on-year to 197 million metric standard cubic metres per day (mmscmd) in June, with imported gas driving the increase.

According to a research report by Equirus, LNG consumption rose 13% month-on-month and 10% year-on-year to 110 mmscmd, while domestic gas supply remained flat month-on-month at 87 mmscdm and declined 8% year-on-year. This has taken India's import dependence to 56%, with the US emerging as the largest LNG supplier, followed by Nigeria and Oman.

Equirus expects July demand to remain strong, although slightly softer than June due to lower power consumption, but warned that stronger Chinese LNG buying is increasing competition for flexible cargoes. Asian spot LNG prices have risen above USD 19 per million British thermal units in July and are currently above USD 20, while European gas storage remains below historical averages.