China and India Experience Significant LNG Import Declines in 2025, Reflecting Shifts in Energy Demand and Supply Dynamics
According to the International Gas Union (IGU)’s annual world LNG report for 2026, China and India exhibited the most significant declines in liquefied natural gas (LNG) imports during the calendar year 2025, reporting decreases of 8.9 million tonnes (mt) and 1.5 mt, respectively. This decrease in import volumes contributed to an overall reduction of net LNG imports into the Asia-Pacific region, despite it remaining the largest LNG-importing region globally. In total, Asia’s imports fell by 9.2 mt, driven largely by reduced demand from major markets like China and India, while China continued to hold the title of the world’s largest LNG importer, albeit with a notable volume drop to 69.77 mt.
The implications of this decline are significant for the average citizen and the energy market. For consumers in India, the reduction in LNG imports may translate to more stable gas prices and less volatility in energy costs, though it could also indicate potential supply challenges if domestic production cannot keep pace with future demand. On the market front, the decreased imports may impact LNG trading dynamics, leading to more competitive pricing in the global market as suppliers adjust to lower demand from Asia. Additionally, the lower utilisation of India’s LNG regasification capacity, dropping to about 47% in 2025, raises questions regarding the efficiency of current investments in LNG infrastructure amid fluctuating demand.
Looking forward, the long-term outlook for India’s LNG sector is cautiously optimistic, as the government continues to pursue further development of LNG infrastructure. With four significant LNG projects currently under construction, including expansions at major terminals, the projected increase in regasification capacity by 11.3 mtpa by 2028 could support future demand recovery. However, stakeholders must monitor global LNG market conditions closely, given the ongoing shifts in energy consumption patterns post-2025. The government and the RBI may also consider strategic policies to enhance energy security and encourage domestic production to mitigate reliance on imports.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)