India’s natural gas consumption is projected to contract by approximately 8% year-on-year in 2026, driven by persistent supply disruptions linked to the ongoing conflict in West Asia.
The forecast represents a stark reversal from the steady growth trajectory that has characterized the South Asian market in recent years, as logistical bottlenecks and elevated risk premiums constrain availability.
The decline underscores how geopolitical instability in the Middle East is directly impacting downstream demand in key importing nations.
With supply sources becoming less reliable, Indian utilities and industrial consumers are likely reducing intake or seeking alternative fuels, altering the regional energy mix.
This shift places additional pressure on global LNG markets, as buyers scramble to secure cargoes amid heightened shipping risks.
The International Energy Agency has also flagged a broader regional downturn, projecting that natural gas demand across the Middle East will fall in 2026.