India has overtaken Spain to become the world’s fourth-largest liquefied natural gas (LNG) regasification market, with a total capacity of 52.5 million tonnes per annum (mtpa) across eight terminals in 2025, according to the International Gas Union’s (IGU) World LNG 2026 report. This positions India behind only Japan, China, and South Korea in regasification capacity.
Capacity and Infrastructure Details
The IGU report noted that among operational terminals, Dahej LNG stands out as the only ultra-large facility with a capacity of 17.5 mtpa, ranking as the sixth-largest globally. The remaining seven terminals each have a regasification capacity of 5 mtpa and fall into the large-scale category. In 2025, India commissioned two projects: Chhara LNG, a new onshore terminal with 5 mtpa capacity, and an expansion at the Dabhol LNG terminal, which increased its capacity from 2.9 mtpa to 5 mtpa through the construction of breakwater infrastructure. The breakwater enables year-round operations, resolving previous monsoon-related shutdowns.
| Terminal | Capacity (mtpa) | Notes |
|---|---|---|
| Dahej LNG | 17.5 | Sixth-largest globally |
| Seven other terminals | 5 each | Large-scale category |
| Chhara LNG | 5 | Commissioned in 2025 |
| Dabhol LNG (expanded) | 5 (up from 2.9) | Breakwater completed; year-round operations |
India currently has four LNG projects under construction, including one new terminal and three expansions at existing facilities, such as the expansion of Dahej LNG. Once commissioned, these projects are expected to add a combined 11.3 mtpa of regasification capacity by 2028, according to the IGU report.
Utilisation Decline and New Projects
Despite capacity growth, LNG regasification utilisation fell to roughly 47% in 2025, down from 58% in 2024. The IGU report attributed this decline to weaker LNG imports during the summer months and increased regasification capacity following recent infrastructure additions. The new terminals and expansions have expanded overall capacity faster than import volumes have risen.
Global Market Context and Risks
The IGU World LNG report noted that the LNG industry entered 2026 against a backdrop of escalating conflict in the Middle East and disruption to critical supply infrastructure. However, the global market demonstrated flexibility and resilience not seen during previous energy crises. Andrea Stegher, President of the IGU, stated: “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.” He emphasised that LNG’s role as a “shock absorber” is being tested, but the market response shows an industry that has “come of age,” with a larger and more diversified supply chain able to mobilise 40% of volumes on a spot basis, helping to contain the immediate impact of the Strait of Hormuz crisis. Rising liquidity on global gas benchmarks has given participants tools to manage risk.
Long-term Outlook
“Looking ahead, the fundamental drivers underpinning the longer-term outlook for LNG demand through 2035 remain intact,” Stegher said. These include population growth, urbanisation, digitalisation, rising electricity demand, and the continued pursuit of cleaner energy systems, which require reliable and flexible energy solutions that LNG is uniquely positioned to support. The IGU report reinforces that despite short-term challenges, the structural demand for LNG remains strong, particularly in Asian markets like India.
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