India emerged as the world’s most active buyer of long-term liquefied natural gas (LNG) contracts in 2025, signing agreements for 8.4 million tons per annum (MTPA) of LNG import capacity. According to the International Group of Liquefied Natural Gas Importers (GIIGNL), the country’s aggressive procurement strategy reflects its growing natural gas demand and long-term energy security ambitions.
Global LNG Contracting Reaches Record Levels
GIIGNL’s 2026 Annual Report highlighted that 2025 was an exceptionally strong year for LNG contracting. During the year, buyers and suppliers signed 83 long-term Sale and Purchase Agreements (SPAs), nearly double the 47 agreements recorded in 2024. Moreover, disclosed contract volumes reached 71.6 MTPA across 76 agreements, representing an increase of around 30% compared with the previous year. According to the report, three key factors drove this surge rising global LNG demand, strategic portfolio management by buyers and long-term procurement to secure future energy supplies.
India Tops Global LNG Buyers
Among all importing nations, India secured the highest volume of long-term LNG contracts in 2025. GIIGNL stated that six Indian companies collectively contracted 8.4 MTPA, underlining a coordinated effort to expand the country’s long-term LNG import capacity.
The contracted volumes include:
Indian Oil Corporation (IOC): 4.7 MTPA
GAIL (India): 1.0 MTPA
Gujarat State Petroleum Corporation (GSPC): 1.0 MTPA
Torrent Power: 0.69 MTPA
Bharat Petroleum Corporation Limited (BPCL): 0.5 MTPA
Hindustan Petroleum Corporation Limited (HPCL): Undisclosed volume
GIIGNL noted that these agreements reflect India’s strategy to secure reliable LNG supplies as domestic natural gas consumption continues to grow.
Short-Term LNG Deals Also Increase
Besides long-term contracts, short-term LNG procurement also gained momentum during 2025. The number of short-term SPAs increased from seven in 2024 to thirteen in 2025. However, Heads of Agreement (HOAs) declined from 21 to 12, indicating that many preliminary negotiations progressed into binding long-term contracts. According to GIIGNL, this trend demonstrates growing confidence among buyers and sellers as new liquefaction projects move closer to final investment decisions (FID).
Middle East Tensions Pose Supply Risks
Despite strong contracting activity, GIIGNL warned that geopolitical tensions in the Middle East continue to threaten global LNG supplies. The report pointed to attacks affecting Qatar’s Ras Laffan liquefaction terminal and one train of the Pearl Gas-to-Liquids (GTL) plant, warning that disruptions at these facilities could have significant implications for international LNG markets. Ras Laffan forms the backbone of Qatar’s LNG export infrastructure. Since the Pearl GTL complex is integrated with the same gas production network, any operational disruption could reduce LNG availability beyond the immediate production loss.
Strait of Hormuz Remains a Critical Chokepoint
GIIGNL also identified the Strait of Hormuz as a major strategic risk. Approximately 20% of global LNG shipments from Qatar and the UAE pass through this narrow shipping route. Consequently, any disruption could significantly affect Asian LNG importers.
Asia to Drive Future LNG Demand
As reported by thehindubusinessline.com, looking ahead, GIIGNL expects Asia to remain the primary driver of global LNG demand. Between 2025 and 2030, contracted LNG volumes across Asia are projected to increase by approximately 50 MTPA. China alone will account for nearly 40 MTPA of this growth, reinforcing its position as the world’s largest LNG growth market.
