India's Natural Gas Consumption Dips 4.5% in 7M FY26; Prices, Credit Stable

• India's natural gas consumption declined 4.5% year-on-year in 7M FY26, primarily due to reduced offtake from fertilizer, power, and refinery sectors.
• City Gas Distribution (CGD) segment continued robust growth, partially offsetting the overall decline in consumption.
• Global LNG prices have eased, and domestic gas prices are expected to soften, with APM gas price forecast around $6.1 per mmbtu for Jan 2026.
• High capex intensity is projected for the sector, with industry debt rising to ₹300 billion by March 31, 2026, driven by CGD and infrastructure investments.
• Despite rising debt, the credit profile of incumbents is expected to remain stable, supported by strong financials and regulatory protection.

Why It Matters: Despite a consumption dip, India's natural gas sector maintains stable prices and a healthy credit outlook.