India has become the world’s fourth-largest LNG regasification market in 2025, with a total capacity of 52.5 million tonnes per annum across eight terminals, surpassing Spain, according to the International Gas Union’s World LNG Report 2026.
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India’s regasification capacity reached 52.5 million tonnes per annum (mtpa) in 2025, making it the world’s fourth-largest market by capacity, after Japan, China, and South Korea.
“India surpassed Spain and became the fourth-largest market for re-gasification capacity in 2025, with 52.5 mtpa across eight terminals,” pointed out IGU’s world liquefied natural gas (LNG) 2026 report.
Among operational LNG regasification terminals in India, Dahej LNG, with a 17.5 mtpa capacity, stands out as the only ultra-large facility and ranks as the sixth-largest globally. The remaining seven terminals fall into the large-scale category, each with a regasification capacity of 5 mtpa, it added.
However, LNG regasification utilisation fell to roughly 47 per cent in 2025, down from 58 per cent in 2024. The decline reflects a combination of weaker LNG imports during the summer months and increased regasification capacity following recent infrastructure additions.
New terminals and expansions boost capacity
In 2025, India commissioned two LNG regasification projects, including one new onshore terminal, Chhara LNG, with a regasification capacity of 5 mtpa, and one expansion project at the Dabhol LNG terminal, completed through the construction of its breakwater infrastructure.
IGU noted that the Dabhol project has effectively enhanced the terminal’s operational efficiency and has increased its capacity to 5 mtpa from 2.9 mtpa.
“Previously idle during the monsoon season, the Dabhol LNG terminal now enables uninterrupted, year-round operations after commissioning of the breakwater,” it added.
India currently has four LNG projects under construction, including one new terminal and three expansion projects at existing facilities, including the expansion of India’s largest terminal, Dahej LNG. Once commissioned, these projects are expected to add a combined 11.3 mtpa of regasification capacity by 2028.
West Asia conflict tests global LNG market
The World LNG report noted that while the LNG industry entered 2026 against a backdrop of escalating conflict in the Middle East and disruption to critical supply infrastructure, the global market demonstrated a level of flexibility and resilience not seen during the previous energy crises.
Andrea Stegher, President of the International Gas Union (IGU), said, “In 2026, the LNG trade has now entered uncharted waters. The conflict in the Gulf has damaged LNG infrastructure, clouded the outlook for the region’s expansion projects and exposed Asian buyers to flow uncertainty and higher prices.”
LNG’s vital role as an invaluable ‘shock absorber’ through previous energy crises is being tested, he emphasised.
“Yet the market’s response demonstrates an industry which has come of age. The ability of a larger and more diversified supply chain to mobilise 40 per cent of volumes on a spot basis has helped to contain the immediate impact of the Strait of Hormuz crisis. Rising liquidity on global Gas benchmarks has offered participants the tools to manage risk,” he said.
Long-term demand outlook remains strong
“Looking ahead, the fundamental drivers underpinning the longer-term outlook for LNG demand through 2035 remain intact. Population growth, urbanisation, digitalisation, rising electricity demand and the continued pursuit of cleaner energy systems will require reliable and flexible energy solutions which LNG is uniquely positioned to support,” Stegher opined.
Published on July 17, 2026
