India’s liquefied natural gas (LNG) imports dropped by 1.5 million tonnes in 2025, according to the International Gas Union’s latest report. Despite lower imports, the country expanded its regasification capacity by 7.1 million tonnes per annum. This infrastructure growth, combined with falling utilization rates, signals a shift in how India manages its energy supply needs.
The global liquefied natural gas (LNG) market experienced a cooling trend in 2025, with major Asian importers seeing notable declines in volume. According to the International Gas Union (IGU) 2026 report, India’s LNG imports fell by 1.5 million tonnes (mt) during the 2025 calendar year, totaling 24.60 mt. This downturn was part of a wider trend in the Asia Pacific region, where total imports dropped by 9.2 mt to 108.7 mt.
While imports declined, India’s focus remained on strengthening its long-term energy infrastructure. The country added 7.1 million tonnes per annum (mtpa) of new regasification capacity, driven by the commissioning of the Chhara LNG terminal (5 mtpa) and the expansion of the Dabhol facility (2.1 mtpa). This expansion is significant, as it pushed India to become the world’s fourth-largest market for regasification capacity, reaching 52.5 mtpa across eight operational terminals.
Impact on Terminal Utilization
The simultaneous drop in imports and the addition of new infrastructure resulted in a notable decline in terminal utilization rates. India’s regasification utilization rate fell to approximately 47 per cent in 2025, compared to 58 per cent in 2024. For investors, this decrease suggests that while the country is building capacity to prepare for future demand, the current infrastructure is running well below its maximum potential. Higher capacity without a proportional rise in import volumes can exert pressure on the financial returns of these capital-intensive projects.
Future Outlook and Expansion
The long-term strategy for the sector appears to prioritize security of supply. India currently has four major LNG projects in the pipeline, which are expected to add a combined 11.3 mtpa of capacity by 2028. This includes planned expansions at the Dahej LNG terminal, the country’s largest facility.
Investors may monitor whether domestic demand growth can catch up with this rapid pace of infrastructure expansion. The performance of these assets will depend heavily on global price trends, which impact the cost of imports, and the speed at which industrial and power sectors increase their intake of natural gas. As additional capacity comes online in the coming years, the key monitorable for the industry will be the trend in utilization rates, as these metrics directly reflect the economic viability of the newly added infrastructure.