India's LNG growth hinges on infrastructure and reform, IGU report finds

The International Gas Union says expanding regasification alone is insufficient; transmission networks and policy certainty are the binding constraints for the world's fourth-largest LNG market.

By Handelsavisen Newsroom · Automated 2026-07-26 05:51 UTC · 1 min read

India's trajectory as a global natural gas hub faces a structural bottleneck, according to a new assessment by the International Gas Union (IGU).

The report argues that while the country has successfully scaled up liquefied natural gas (LNG) import terminals, the next phase of demand growth is constrained by inadequate transmission and distribution networks and a lack of regulatory certainty for private investors.

The IGU highlights that long-term policy consistency is essential to unlock capital for gas-intensive industries and midstream infrastructure.

Without these reforms, the market risks stagnating despite its recent volume gains.

The report underscores that the current infrastructure gap limits the ability of domestic industries to switch from coal and oil to cleaner gas alternatives, capping the fuel's market share in the power and transport sectors.

This analysis comes as India solidifies its position in the global LNG trade.