India’s fertilizer industry is the single largest consumer of natural gas in the country, accounting for nearly one-third of total usage last year. According to the authors of the newly released report, this sector remains the primary driver of demand despite signs that its growth is reaching a limit.
The report states, “India’s fertilizer industry is the single largest-consuming sector of gas, accounting for 29% of its consumption last year.” It further notes that “LNG has only been competitive in India’s highly-subsidized fertilizer industry.”
This means that making agricultural nutrients is the top way India uses its gas, far more than for generating electricity or other manufacturing. Because the government provides financial support to help keep fertilizer prices low for farmers, it is one of the few areas where expensive imported gas still makes financial sense compared to other energy sources.
The briefing ‘Southern Asia’s gas plans may be overblown’ was released by Global Energy Monitor in March 2026. Prepared by authors Robert Rozansky and Julie Joly, the report analyzes how geopolitical shocks and falling renewable costs are undermining ambitious gas infrastructure projects across India, Pakistan, and Bangladesh.
