India emerged as the world’s fourth-largest liquefied natural gas (LNG) regasification market, achieving a total regasification capacity of 52.5 million tons per annum (MTPA) in 2025. According to the International Gas Union’s (IGU) World LNG Report 2026, the country has overtaken Spain, underscoring its growing influence in the global LNG value chain. With this milestone, India now ranks behind only Japan, China, and South Korea, reflecting sustained investments in LNG infrastructure and the country’s commitment to strengthening energy security while supporting a cleaner energy transition.
Regasification Infrastructure Continues to Expand
India’s LNG infrastructure has witnessed significant expansion over the past year. The Dahej LNG terminal remains the country’s largest regasification facility with a capacity of 17.5 MTPA, while the remaining seven operational terminals each have capacities of around 5 MTPA.
In 2025, India commissioned two major projects that further enhanced its LNG network:
The Chhara LNG terminal was commissioned with a capacity of 5 MTPA.
The Dabhol LNG terminal expanded its capacity from 2.9 MTPA to 5 MTPA following the completion of advanced breakwater infrastructure.
Notably, the upgraded Dabhol terminal can now operate throughout the year, eliminating seasonal disruptions caused by the southwest monsoon and significantly improving operational efficiency.
Utilisation Rate Declines Despite Capacity Growth
While India’s regasification capacity has increased substantially, terminal utilisation declined during 2025. According to the report, the country’s LNG regasification utilisation rate dropped to approximately 47%, compared with 58% in 2024. The decline primarily resulted from lower LNG imports during the summer months and the commissioning of additional regasification infrastructure, which temporarily outpaced demand growth. Despite the lower utilisation, the expanded infrastructure provides India with greater operational flexibility to meet future energy demand.
More LNG Projects Under Development
India’s LNG expansion is set to continue over the next few years. Currently, four LNG infrastructure projects are under construction, comprising one new regasification terminal and three capacity expansion projects at existing facilities. Together, these projects are expected to add 11.3 MTPA of regasification capacity by 2028, further strengthening India’s LNG import and distribution capabilities.
Global LNG Market Faces Geopolitical Challenges
The World LNG Report 2026 also highlights growing geopolitical uncertainties affecting global LNG markets. Escalating tensions in West Asia continue to pose risks to LNG supply chains and infrastructure. However, the report notes that the global LNG market has become more resilient due to a diversified supply base and increased flexibility in spot cargo trading. According to Andrea Stegher, President of the International Gas Union, disruptions in the Gulf region have created uncertainty for Asian LNG buyers and influenced global pricing. Nevertheless, the growing availability of spot LNG cargoes has helped mitigate immediate supply risks and improve market resilience.
Energy Security Drives India’s LNG Expansion
India’s expanding LNG regasification capacity reflects its long-term strategy to enhance energy security, diversify fuel sources, and accelerate the transition toward cleaner energy. As the country’s economy continues to grow and urbanisation accelerates, natural gas is expected to play an increasingly important role in meeting industrial, commercial, and residential energy demand. Operational improvements at key terminals, particularly Dabhol, will enable more reliable LNG supplies while strengthening India’s ability to respond to seasonal demand fluctuations and supply disruptions. As reported by indianewsweek.com, India’s emergence as the fourth-largest LNG regasification market marks a significant milestone in its energy infrastructure development. The ongoing expansion of LNG terminals and regasification capacity is expected to improve supply reliability, support industrial growth, and advance the country’s clean energy objectives.
