India oil & gas: Sustained headwinds deny a near-term rebound in India gas consumption

Research evidence excerpt

India oil & gas: Sustained headwinds deny a near-term rebound in India gas consumption

31 July 2026

India oil & gas EquitiesOil & Gas

Sustained headwinds deny a near-term rebound in

India gas consumption India

◆ High LNG prices for the rest of FY27 should keep India’s natural Saurabh Jain*

gas demand muted; oil-linked contracts could get expensive Analyst,HSBC SecuritiesIndia Materialsand CapitalandMarketsEnergy (India) Private

Limited

◆ Supplies remain constrained preventing a rebound in gas saurabh2jain@hsbc.co.in

+91 22 6164 0691

consumption anytime soon

Puneet Gulati*, CFA

Senior Analyst, India Energy, Property & Infra

◆ We have a Buy rating on GAIL and a Hold on PLNG HSBC Securities and Capital Markets (India) Private

puneetgulati@hsbc.co.in

India gas consumption to remain muted in FY27. India natural gas consumption +91 82 9189 7591

has declined by 9% y-o-y during March-June 2026 and we do not expect a major Evan Li*

rebound anytime soon. We see two key reasons: 1) Sustained disruptions in LNG Head, Asia Energy Transition Research

The Hongkong and Shanghai Banking Corporation Limited

supplies as the Middle East conflict continues; 2) higher LNG prices for the rest of the evan.m.h.li@hsbc.com.hk

year would lead to demand destruction from sectors like power, refineries, +852 2996 6619

petrochemicals and other industries as they prefer alternative fuel sources like fuel oil

given lower prices which can further soften with any fall in Brent. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations

Supplies remain constrained. We notice limited transit through the Strait of Hormuz

as the marine traffic has reduced to ~1-2 LNG vessels per day from ~6 vessels per

day pre-conflict.