Why Is India’s LNG Demand Shrinking In 2025 Despite Long-Term Growth?
Petronet LNG and India’s gas sector face a unique shift in 2025, as the country’s annual LNG demand is set to decline for the first time in years. Buyers are holding back purchases, anticipating higher global production and potentially lower prices ahead. While this signals a short-term slowdown, the long-term demand outlook remains robust.
About India’s LNG Market
India is the world’s fourth-largest LNG importer, with gas playing a key role in power generation, fertilizers, and industrial use. The sector has historically shown steady growth, but 2025 marks a turning point with demand contraction on the back of cautious buying and shifting global supply dynamics.
Short-Term Slowdown
The near-term outlook points to muted demand as buyers strategically delay purchases. Expectations of increased supply and softer global prices are encouraging industries to wait. This cautious stance impacts LNG suppliers globally but provides relief to Indian consumers.
Long-Term Outlook
Despite the temporary dip, LNG demand in India remains structurally strong. By 2030, imports could nearly double to 40 million tonnes, driven by rising energy needs and the country’s clean energy transition goals. This underscores that the current slowdown is more cyclical than structural.
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Investor Takeaway
India’s LNG demand dip in 2025 reflects short-term caution, not a structural decline. For Petronet LNG and sector players, this phase may bring challenges, but industries benefit from lower costs. Over the long term, robust growth in imports highlights strong fundamentals and energy transition-driven demand.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
