India's LNG Prices Set to Rise, Squeezing Downstream Margins

New Delhi-based research firm Equirus has released a report predicting that India's liquefied natural gas (LNG) prices may increase from September. The country currently imports 59% of its total gas consumption, with this figure rising from 44% in April 2026.

This increased demand for LNG has been driven by the ongoing conflict and subsequent reduction in domestic gas production. As a result, India is highly exposed to fluctuating spot prices, which are currently above $20/mmbtu. Equirus believes that margins for downstream players may be squeezed as gas costs rise.

Globally, LNG exports outside of the Middle East are expected to increase by around 40 million tons (mt) this year. However, a decline in Middle Eastern exports is predicted to more than offset this growth, resulting in a net contraction of about 5 mt in global LNG exports.