IGU report on India gas growth

The International Gas Union (IGU) published a report on July 26, 2026, analyzing India's long-term natural gas growth prospects. The report emphasizes that India must accelerate investment in transmission and distribution infrastructure, reform gas pricing and market regulations, and boost demand from gas-intensive industries to unlock sustained growth. It highlights India's heavy reliance on LNG and LPG imports from the Gulf region, particularly Qatar, and the vulnerability exposed by the recent Strait of Hormuz crisis during the Iran conflict. Domestic gas production meets only 50-52% of demand, with the rest imported as LNG from Qatar, Australia, the US, and Russia. LPG imports cover 60-65% of consumption. The report notes that new global LNG capacity expected later this decade could lower prices and improve gas economics, but India must address infrastructure bottlenecks and market constraints to capitalize. It calls for liberalizing LNG terminal bookings and system entry charges, expanding pipeline networks to compete with coal, and reforming wholesale gas pricing. The Gulf crisis has raised reliability concerns, but a diversified import portfolio and resolution of shipping disruptions could mitigate risks.