(Parul Bakshi – Observer Research Foundation) Global gas markets are entering a period of structural loosening. New liquefaction capacity expected through the late 2020s, alongside muted demand growth in Europe and a levelling-off in China, is easing the global supply–demand balance. As highlighted in the Oxford Institute for Energy Studies (OIES) report, these dynamics could anchor LNG prices around US$6/MMBtu (Metric Million British Thermal Unit) by the end of the decade. For India, the implications of a sustained US$6 LNG world extend well beyond short-term price relief. While earlier episodes of low prices produced largely episodic and reversible demand responses, prolonged affordability could begin to alter investment decisions, fuel choices, and infrastructure utilisation across sectors. In contrast to short-term switchability, a stable US$6 environment has the potential to support structural demand formation.
A $6 LNG Window: Mapping India’s Long-Term Gas Demand Potential
