India's LNG Demand Remains Resilient Amid Global Supply Disruptions

India's demand for Liquefied Natural Gas (LNG) remains strong despite high spot prices, but rising gas costs are a growing concern. The country imported 59% of its total gas consumption in July 2026, the highest share since July 2021 when it stood at 65%. This increase is attributed to flat domestic gas production and reliance on imports.

A report by Equirus warns that LNG prices are expected to surge from September due to global supply disruptions. The Middle East's export decline of around 45 million tons would offset new projects in the US, resulting in a net contraction of about 5 million tons in global LNG exports. This outlook may worsen with a prolonged disruption, potentially leading to a year-long shortage.

For India, Equirus notes that LNG demand has remained resilient at spot prices above $20 per million British thermal units (mmbtu). However, the report warns of margin compression and higher gas costs for downstream players as a result of rising competition for resources. The country may face elevated spot prices through winter due to intensified competition between Europe and Asia for flexible US LNG.