Gas availability tightens as domestic output dips, LNG dependence deepens

INDIA'S NATURAL GAS ecosystem remains under strain, with lower domestic production and flat liquefied natural gas (LNG) imports constraining overall availability even as consumption from key sectors continues to edge higher, data from the Petroleum Planning & Analysis Cell (PPAC) Monthly Gas Report for December 2025 show.

- SAURAV ANAND

The numbers underline a widening structural gap between India’s gas demand ambitions and supply realities, raising fresh questions over the country’s push to increase the share of gas in its energy mix.Gross domestic natural gas production in December 2025 fell to 2,937 million standard cubic metres (MMSCM), a 4.2% year-on-year decline, driven by lower output from ageing fields operated by ONGC and private producers. After accounting for internal consumption, flaring and losses, net gas production available for sale declined to 2,446 MMSCM, down 4.6% from the year-ago period.

LNG imports during the month stood at 2,808 MMSCM, marginally lower by 0.7% yo-y, indicating that India did not materially step up spot LNG purchases despite weaker domestic output. As a result, total natural gas available for sale dropped 2.6% yo-y to 5,254 MMSCM in December, tightening supply at a time when sectoral demand was rising.