India shields city gas users as LNG disruption hits supply
In short
India protected city gas supply by cutting LNG deliveries to fertiliser plants, refineries and industrial users during a Middle East crisis. The reporting says South Asia’s LNG demand may fall by about 6 million tonnes in 2026, and India has seen higher LNG prices plus an estimated 1.5 million-tonne drop in gas demand.
This matters because households and city gas users were shielded, while other users took the hit. It is still not clear how long the supply disruption will last.
What the reporting says
India shielded city gas supplies by cutting deliveries to fertiliser plants, refineries and industrial users as Middle East conflict disrupted LNG shipments. The reporting says South Asia’s LNG demand is now expected to fall by about 6 million tonnes in 2026, while India also faced sharply higher LNG prices and an estimated 1.5 million-tonne reduction in gas demand. The immediate impact on city gas users is limited, but the wider regional supply shock remains unresolved.
Why it matters
India protected city gas users by reducing LNG deliveries to fertiliser plants, refineries and industrial consumers as Middle East disruption hit shipments. The reporting says this helped India weather the crisis better than Pakistan and Bangladesh, but it also came with sharply higher LNG prices and an estimated 1.5 million-tonne reduction in gas demand. The broader regional outlook has weakened, with South Asian LNG demand now expected to fall by about 6 million tonnes in 2026.