India LNG demand outlook: price correction fails to revive buyers
Global LNG markets have begun to cool following easing geopolitical tensions and improving shipping conditions. However, the India LNG demand outlook remains weak even as international gas prices begin to correct from earlier highs.
Market reports indicate that Asian LNG prices may decline toward the $15 per MMBtu range as geopolitical premiums unwind. Despite this correction, the India LNG demand outlook shows limited recovery because earlier price spikes forced several industrial sectors to reduce LNG consumption.
Industries such as ceramics, glass manufacturing, and small-scale industrial clusters had already shifted to alternative fuels or scaled back production when prices surged. As a result, the India LNG demand outlook now reflects structural demand erosion rather than temporary consumption weakness.
Currently, the fertilizer sector remains the most stable source of LNG demand due to its subsidized pricing framework. In contrast, consumption from city gas distribution networks, industrial users, and gas-based power plants remains subdued.Until supply conditions stabilize further and prices return to more sustainable levels, the India LNG demand outlook is likely to remain cautious despite broader softening in global LNG markets, India LNG Demand, LNG India, India Gas Market, Natural Gas India, Energy Demand India, Gas Infrastructure India.
