Energy · Gas economy

Natural Gas & LNG

India uses about 69 billion cubic metres of gas a year, and roughly half of it is imported as LNG. This page covers domestic production, LNG terminals, pipelines, city gas distribution and the main users.

Consumption68.8 BCM (FY 2025-26)

LNG imports34.4 BCM (FY 2025-26)

Import dependence50.1%

Hardeep Singh Puri in a purple turban holding a bouquet between two officials, one in a suit and one in Gulf attire — Welcomed during an overseas engagement. The event, place and date are not independently verified.

Supply

Domestic gas and imported LNG

Gas supply, FY 2025-26

Million standard cubic metres (MMSCM)

View as table

Item	MMSCM
Gross domestic production	34,776
LNG imports	34,427

Source: PPAC Snapshot, Aug 2026. Domestic production in FY 2024-25: 36,113 MMSCM. LNG import bill: US$13.4 bn.

68.8BCMTotal gas consumptionFY 2025-26 · PPAC

50.1%Import dependenceFY 2025-26 · PPAC

8LNG regasification terminals01.09.2026 · PPAC

58.5MMTPACombined regasification capacity01.09.2026 · PPAC

The eight terminals listed by PPAC are Dahej (22.5 MMTPA, the largest), Hazira, Dabhol, Kochi, Ennore, Mundra, Dhamra and Chhara. Converting BCM to tonnes of LNG requires assumptions, so this page uses PPAC's volume units.

Networks

Pipelines and city gas distribution

The Petroleum and Natural Gas Regulatory Board authorises city gas distribution (CGD) in “geographical areas” and regulates common-carrier pipelines.

26,348kmCommon-carrier gas pipelines in operation (3,646 km under construction)31.03.2026 · PNGRB via PPAC

1.75croreDomestic piped natural gas (PNG) connections31.07.2026 · PNGRB via PPAC

9,096CNG stations31.07.2026 · PPAC

307CGD geographical areas authorised, covering almost all of India excluding islandsPNGRB, as reported 2026

From 1 January 2026, PNGRB cut the unified pipeline tariff from three zones to two. Zone 1 (up to 300 km) is ₹54.00/MMBTU and Zone 2 is ₹102.86/MMBTU. All CNG (transport) and domestic PNG customers pay the Zone 1 rate. (PNGRB press note). The figure of 307 areas comes from media reports of PNGRB data and should be checked against the regulator's own list.

Users

Where gas is used

Gas has several main uses in India. Each responds differently to price.

Sector	How gas is used	Policy note
Fertiliser	Feedstock for urea production	Priority allocation of domestic gas; pooled pricing for urea units
City gas: households	Piped gas for cooking	Priority for domestic (APM) gas; Zone 1 tariff
City gas: transport	CNG for cars, buses, three-wheelers	Priority allocation; CBG blending obligation applies
Power	Gas-based generation, often for peak demand	Plant use depends on the price of imported LNG
Refineries & petrochemicals	Fuel and hydrogen production	Largely LNG-based
Industry	Process heat in ceramics, glass, steel and other industries	Competes with coal, fuel oil and electricity

Policy lens

Domestic gas pricing

The 2023 domestic gas pricing formula

Pricing

Policy objective

Link the price of gas from older “APM” fields to crude oil, with a floor and a ceiling. This protects producers from very low prices and consumers from very high ones.

Implementation

Since April 2023 the price has been 10% of the monthly Indian crude basket price, with a floor of US$4 and a ceiling of US$6.50 per MMBTU. The ceiling rises by US$0.25 a year: US$6.75 in FY 2025-26 and US$7.00 in FY 2026-27. Deepwater and high-pressure/high-temperature gas has a separate ceiling (US$8.90 for April–September 2026).

Data

In September 2026 the calculated price was US$9.00 per MMBTU. The applicable price was the US$7.00 ceiling (PPAC).

Public statements

The minister has written on gas pricing in The Indian Express, under the headline “India's gas policy has protected the consumer from global price volatility” (May 2023). See Books & Writings.

Outcome

Because the calculated price has been above the ceiling, the ceiling has set the price paid. How this affects producers' incentives and consumer prices is debated, and it is not assessed here.

Contracts

Documented long-term LNG agreements

Date	Parties	Terms (as reported)	Source
6 Feb 2024	Petronet LNG – QatarEnergy	20-year extension, 7.5 MTPA from 2028; signed at India Energy Week 2024 in the minister's presence	ANI / trade press (no PIB release found)
13 Feb 2025	Indian Oil – ADNOC	About 1.2 MTPA for 14 years from 2026; about US$7 bn	PIB
13 Feb 2025	Indian Oil – Nepal	Indian Oil's first LNG export agreement	PIB

Sources

PPAC — Snapshot of India's Oil & Gas Data, August 2026 (PDF) — ppac.gov.in/download.php?file=rep_studies/1789735879_Final__Snapshot_o…
Petroleum and Natural Gas Regulatory Board — pngrb.gov.in/
PNGRB — Press note on unified tariff zones (16 Dec 2025, PDF) — pngrb.gov.in/pdf/press-note/20251216_PR.pdf
PIB — Agreements at India Energy Week 2025 (13 Feb 2025) — pib.gov.in/PressReleasePage.aspx?PRID=2102887
The Indian Express — columns by Hardeep S Puri — indianexpress.com/profile/columnist/hardeep-s-puri/

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