India turns benchmark-driven buyer with term LNG imports

INDIA IMPORTED JUST under 26 million tonne per annum (mtpa) of liquefied natural gas (LNG) in 2025, with an additional 3.5-4 mtpa of long-term contracted volumes scheduled to start deliveries from 2026, a development that is expected to narrow the country’s reliance on spot LNG purchases and increase sensitivity to global price benchmarks.

- SAURAV ANAND

With higher term supplies coming on stream, the scope for spot LNG buying in 2026 is expected to remain limited unless international prices align with competing fuels such as propane, naphtha and fuel oil. Market participants say India is increasingly responding to dislocations between global price markers rather than locking into fixed supply structures.

These trends were discussed on Day 2 of India Energy Week (IEW) 2026 in Goa, where speakers highlighted how benchmark-driven gas procurement and accelerated biofuel adoption are shaping India’s evolving energy strategy amid global volatility.

According to Kenneth Foo, global director for LNG price reporting, S&P Global Energy, India’s LNG procurement behaviour is increasingly benchmark-linked.