2Q 2026
The following is an excerpt of the Demand section of the Global LNG Outlook.
India
While India’s LNG demand growth is expected to resume strong growth in the medium to long-term, we have revised down our near-term demand compared to the previous GLO with LNG imports in India forecast to be 19.6 MMt in 2026, 31.7 MMt in 2027 and 39.7 MMt in 2028.
With an increase in LNG supply globally from the late 2020s onwards, LNG demand in India is expected to reach 67.3 MMt in 2035 and 76.9 MMt in 2045, which are upward revisions to our previous forecast. Despite the short-term impact of the cessation of Qatari LNG production, the policy settings and business conditions in India are in place to underpin further sustained growth in its LNG demand.
Near Term Outlook
India’s LNG imports for 1Q 2026 were about equal to import volumes in 1Q 2025 as demand from the power generation and fertilizer sectors were sustained. However, the outlook for the Indian economy continues to be uncertain amid sustained higher oil prices following recent geopolitical developments. In this context, LNG demand in India is also subject to increased uncertainty, particularly as Qatar and Abu Dhabi are important suppliers, representing 59% of imports in 2025. Reflecting this, for 2026, LNG demand is projected to contract by 19% to 19.6MMt. LNG imports are forecast to rebound in 2027 as global LNG supply tightness eases, with imports forecast to rise to 31.7 MMt.
- Several SPAs of 10-years duration or greater were signed by Indian buyers in 2025 for new term LNG supplies that will commence shipments in the 2026 – 2027 period. Some of this supply will have been designated to have been supplied from Qatar and Abu Dhabi which are likely to be subject to FM because of the conflict in the Persian Gulf. These volumes include SPAs that GSPC signed with TotalEnergies (0.4 MMt/y, 2026-2035), Indian Oil signed with ADNOC (1.2 MMt/y, 2026-2039), Torrent Power signed with BP (0.41 MMt/y, 2027-2036), and an SPA that GAIL signed with Vitol for 1 MMt/y over 10 years from 2026 to 2035.
Structural Outlook to 2046
Gas demand in India remains robust and is expected to continue to grow strongly over the medium to longer term and has the potential to surpass 100 bcm/y by the early 2030s. However, domestic gas supply growth within India is not expected to keep pace with this growth in demand and LNG will continue to be required in India to satisfy the needs of end users in the country.
- With greater availability of LNG supply from the late 2020s onwards, LNG demand in India remains strong. India’s imports are still expected to grow at 7.1% on an average annual basis between 2026 and 2046 to reach 77.4 MMt.
With the addition of the Chhara terminal, India now has eight operating LNG terminals – six on its west coast and two on the east – with total regasification capacity of over 59 MMt/y. The country’s two major terminals – 22.5 MMt/y Dahej and 5 MMt/y Hazira – are often highly utilized.
- The 6.5 MMt/y Adani – Total owned Dhamra terminal was commissioned in 2023 and early work is already underway to expand terminal capacity to 10 MMt/y, expected by around 2028. Others, such as Dabhol and the 5 MMt/y Kochi terminal are underutilized due to limited pipeline connectivity or a lack of breakwater facilities that curb operations during the June-September monsoon season. Several Indian firms, including H-Energy and Swan Energy, had planned FSRUs, but development has stalled due to regulatory issues and difficult market conditions.
- Petronet completed an expansion of its 17.5 MMt/y Dahej terminal at end 1Q 2026, increasing its capacity by 5 MMt/y to 22.5 MMt/y through debottlenecking and new regasification infrastructure additions. Future baseload throughput at the terminal is underpinned by the extension of its 7.5 MMt SPA with Qatar Energy. The original deal, signed in 1999, for first deliveries in 2004, was to expire in 2028. The term of the agreement has now been extended until 2048, but the contract changed from FOB to DES. Volumes during the extension period will continue to be received primarily at Dahej, by GAIL (60%), Indian Oil Corp. (30%) and Bharat Petroleum Corp. (10%)
- With expansions at existing import terminals in India and the addition of new terminal capacity, LNG terminal capacity is forecast to rise to around 70 MMt/y in 2030.
This excerpt is taken from Poten’s Global LNG Outlook. Complete the form below to learn more or request a trial.