India’s Q1FY27 gas demand drops more than 10% as Qatar LNG shutdown hits imports
AI Market Summary
India's gas demand fell >10% YoY early in Q1FY27 as Qatar LNG outages cut imports and domestic output weakened, forcing higher-cost spot purchases. This squeezes downstream margins (IGL/MGL) via elevated procurement costs and rupee depreciation, while upstream/transport (GAIL) faces weaker volumes despite partial offset from higher LPG realizations. New LNG storage investments signal ongoing supply-risk management but near-term earnings pressure dominates.
Impact level
● Medium
Affected assets
NCCONATURALGAS2USD/USDT-0.65%
AI Insight · NCCONATURALGAS2USD/USDTAI Insight
▼ Bearish
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India’s daily natural gas consumption in the first two months of Q1FY27 fell more than 10% year on year to about 170 mmscmd, as LNG imports dropped following a shutdown at a Qatar LNG plant and domestic output remained weak. Nomura Global Markets Research expects GAIL’s Ebitda to decline 25% year on year in Q1FY27. City gas distributors such as IGL and MGL may post higher volumes, but elevated procurement costs and rupee depreciation are weighing on margins. PLNG is investing ₹3,600 crore to build three new LNG storage tanks to reduce exposure to future supply disruptions.
