Domestic Gas Production India: LNG imports fill the widening supply gap
Domestic Gas Production India continued to weaken in June 2026, with gross natural gas output falling 4.86% year on year to 2,759 MMSCM. Net production available for sale declined even faster, dropping 6.62% to 2,275 MMSCM. At the same time, LNG imports increased 5.55% to 2,906 MMSCM, taking imported gas above domestic net production for sale. Indian Petroplus analysis shows that India's gas availability is therefore being maintained increasingly through imports rather than higher domestic output.
Total gas available for sale stood at 5,181 MMSCM, almost unchanged year on year, while total consumption reached 5,907 MMSCM, up 1.5%. The demand picture, however, was uneven across sectors. City gas distribution consumed 1,748 MMSCM and overtook fertiliser as the country's largest gas-consuming sector in June. Fertiliser consumption stood at 1,655 MMSCM. The shift is notable because fertiliser had remained the largest consumer through FY26.
The supply decline was concentrated among private and joint-venture operators. Their gross production fell 13% year on year to 1,017 MMSCM, compared with a 1.8% decline for ONGC and a 15% decline for OIL. Power-sector gas consumption also fell 17.4%, while petrochemical consumption dropped 47.9%. In contrast, refinery consumption increased 13.1%. The latest Domestic Gas Production India data therefore point to a market where LNG is increasingly absorbing domestic supply weakness, even as consumption growth remains uneven across major user segments.
