Mumbai, Nov. 10 -- India's natural gas demand is expected to decline by around 2 per cent year-on-year in 2026, even as liquefied natural gas (LNG) imports continue to increase amid weakening domestic production, according to the International Energy Agency (IEA). The outlook reflects the impact of disrupted global supplies, elevated international prices and changing domestic production trends.
The IEA said India's gas consumption contracted sharply between March and May 2026 following the crisis linked to disruptions through the Strait of Hormuz. Demand recovered from June and remained broadly in line with levels recorded a year earlier, but the improvement in consumption did not reduce the country's dependence on imported gas.
India's LNG imports increased by 10 per cent, or nearly 3 bn cubic metres (bcm), year-on-year during January-October 2026. The IEA attributed the rise to domestic production weakening more significantly than total demand, highlighting the growing role of imported LNG in meeting the country's energy requirements.
The supply disruption also affected major LNG exporters. Delivered supplies from Qatar and the United Arab Emirates fell by around 62 bcm, or 63 per cent, year-on-year during the first 10 months of 2026. The decline represented the largest supply shock in the history of the LNG market and pushed Asian and European gas prices to their highest levels since the 2022-23 energy crisis.
Globally, natural gas demand is projected to decline by around 1.5 per cent, or nearly 65 bcm, in 2026, marking the third annual fall this decade. LNG supply is also expected to drop by 3 per cent, or almost 20 bcm. The IEA called for stronger international cooperation and adequate investment across gas and LNG value chains to improve supply resilience amid geopolitical uncertainty.
Published by HT Digital Content Services with permission from Construction World.