India emerged as the world’s most active long-term LNG buyer market in 2025 with a total of 8.4 million tons per year contracted, according to the annual 2026 report of the International Group of LNG Importers, known by its French acronym GIIGNL.
Last year, India added its eighth LNG import terminal as it plans to nearly double the share of natural gas in its energy mix to about 15% in a decade.
India was the most active end-user buyer last year, with 8.4 MTPA in total contracts disclosed across six entities, including IndianOil (4.7 MTPA), GAIL (1 MTPA), GSPC (1 MTPA), Torrent Power (0.69 MTPA), BPCL (0.5 MTPA), and HPCL (undisclosed).
The contracted long-term LNG supply volumes reflect “a coordinated expansion of long-term import capacity driven by rising domestic gas demand,” GIIGNL said in its report.
For the entire LNG industry, 2025 was an “exceptionally active year for LNG contracting”, with 83 long-term sales and purchase (SPAs) signed, nearly double the 47 in 2024, according to the report.
Disclosed newly-contracted volumes reached 71.6 MTPA across 76 agreements, which is some 30% higher compared to the prior year.
Short-term SPA activity also rose from 7 to 13, while heads of agreement (HOA) activity declined from 21 to 12.
The surge in global long-term LNG contracting “reflects the convergence of two structural forces: sustained demand growth across key importing markets, and an ongoing wave of liquefaction projects seeking offtake commitments to reach FID,” GIIGNL said.
Referring to the Middle East crisis and its impact on Qatar’s LNG supply, the group of LNG importers said that the loss of Qatari cargoes, due to the Iranian missile strike in March and the Qatari dependence on an open Strait of Hormuz, is severely tightening the market.
“Short-term replacement options remain limited: alternative Atlantic and Pacific basin supply can only partly offset missing Qatar cargoes, and many Asian markets are already highly contracted and operationally exposed,” GIIGNL said, and added, “The supply consequences are material in all disruption scenarios.”
By Charles Kennedy for Oilprice.com
