India added 52.5 million tonnes per annum of LNG regasification capacity in 2025, overtaking Spain to become the world’s fourth largest market, The Hindu reported.

Regasification is the process of converting liquefied natural gas (LNG) at cryogenic temperatures (-162°C) back into its gaseous state so it can be distributed through pipelines for heating, cooking, and power generation.

The Dahej LNG terminal, with 17.5 mtpa capacity, ranked sixth globally, while new projects at Chhara and Dabhol boosted India’s infrastructure. Despite this expansion, utilisation fell to 47% due to weaker imports and rapid capacity growth.

India’s regasification capacity expansion in 2025 was significant, with eight operational terminals contributing to a total of 52.5 mtpa. This achievement placed India ahead of Spain and firmly established it as the fourth largest regasification market worldwide, according to the International Gas Union’s World LNG Report.

The Dahej LNG terminal stood out as India’s largest facility, with a regasification capacity of 17.5 mtpa, ranking sixth globally. It remains the only ultra-large terminal in the country. The remaining seven terminals fall into the large-scale category, each with a capacity of 5 mtpa.

Two major projects were commissioned in 2025. The Chhara LNG terminal, a new onshore facility, added 5 mtpa capacity. Meanwhile, the Dabhol LNG terminal completed its breakwater infrastructure, increasing its capacity from 2.9 mtpa to 5 mtpa. This upgrade enabled uninterrupted year-round operations, overcoming previous seasonal shutdowns during the monsoon.

India currently has four LNG projects under construction. These include one new terminal and three expansion projects at existing facilities, notably the expansion of Dahej LNG. Once completed by 2028, these projects are expected to add a combined 11.3 mtpa of regasification capacity.

The expansion reflects rising demand for LNG in India, driven by fertiliser production, city gas distribution, utilities, and industrial growth. Government initiatives to increase LNG’s share in the energy mix have further accelerated infrastructure development. According to the International Energy Agency, India’s natural gas consumption is forecast to grow nearly 60% by 2030, supported by robust demand in industry and power generation.

Despite capacity growth, India’s regasification utilisation fell to about 47% in 2025, down from 58% in 2024. This decline was attributed to weaker LNG imports during summer months and the rapid addition of new infrastructure.

Asia led global regasification capacity additions in 2025, with China contributing 15.1 mtpa and India adding 7.1 mtpa, together accounting for over 35% of global growth. However, LNG imports into Asia fell by 9.2 million tonnes to 108.7 million tonnes, mainly due to reduced intake in China and India.

India’s LNG infrastructure expansion underscores its ambition to strengthen energy security and diversify supply sources.

The commissioning of new projects and ongoing construction highlight the country’s commitment to building a resilient energy system capable of meeting rising demand while reducing dependence on imports of other fuels.

Agencies