India’s natural gas consumption is expected to moderate in FY2026 owing to subdued offtake from all sectors barring City Gas Distribution (CGD). Domestic gas production is estimated to remain stagnant while incremental production is likely to be offset by the natural decline from existing fields.

• Natural gas consumption has declined -4.5% YoY in 7M FY2026 driven by moderation in offtake by the fertiliser, power and the refinery segments. CGD continues to witness healthy growth and remans key driver of gas consumption in India. Overall gas consumption in the country is expected remain flat or moderate in low single digits in FY2026.
• LNG prices have eased with expectation of warmer winters in the EU, China and the US along with healthy natural gas inventory across major gas consuming nations. Upcoming sizeable LNG capacity additions globally are expected to result in moderation in LNG prices from CY2027.