India, as one of the largest buyers of liquefied natural gas (LNG) in the world, is experiencing a new record in purchasing this product. With a decline in domestic gas production and rising demand, the country must secure a larger volume of LNG from the global market. LNG prices have significantly increased over the past year, reaching three times higher.
Increase in imports and changes in supply structure
India's LNG imports are expected to reach a record 2.8 million tons in October, reflecting an 18 percent increase compared to last year. In 2025, India imported 24.9 million tons of LNG, 45 percent of which was sourced from Qatar. However, with geopolitical crises approaching and reduced supply from Qatar, India has turned to the United States, which now supplies one-third of monthly imports.
Read more: Oil prices reached $115 after the attack on the Saudi refinery
In September 2026, due to the gradual resumption of gas flows from the Gulf, India was able to find more options for its gas supply. While 2.5 million tons of LNG were imported in September, this figure is expected to rise to 2.8 million tons this month.
Changes in gas demand and domestic production
Gas demand in India is increasing due to rising consumption across various sectors. Gas consumption rose from 60 billion cubic meters in 2022 to 68.5 billion cubic meters in 2025. Meanwhile, domestic gas production has remained steady at an average of 3436 billion cubic meters per year over the past four years.
Due to a 4 percent decline in production in 2026, the share of domestically produced gas in total consumption has decreased to 47 percent in the first half of this year. These changes have made LNG play a key role in addressing existing shortages. In fact, the fertilizer production and urban gas distribution sectors account for 29 percent and 28.5 percent of India's total gas consumption, respectively.
The Indian government, in order to support fertilizer production, has prioritized urea production and is striving to maintain adequate supply of this product, especially in key states like Uttar Pradesh and Punjab.
Read more: Oil prices rise after the attack on the largest Saudi refinery · Masoud Pezeshkian emphasized strengthening cooperation among gas-exporting countries
