Why have Indian power firms dramatically increased their natural gas purchases recently?

Indian power generation companies have quadrupled their natural gas purchases from the Indian Gas Exchange (IGX) over the past couple of months to meet surging electricity demand caused by blistering summer heat waves across large swathes of the country, with sweltering around-the-clock temperatures pushing peak demand to new highs—especially during hot nights—necessitating greater use of gas-fired power capacity.

What are the key statistics showing the scale and cost of this surge in gas procurement by India's power sector?

From April 1 through May 26, the Indian Gas Exchange sold 4.5 trillion British Thermal Units (BTU) of natural gas to power firms—a nearly 350% increase year-on-year; all of it was regasified liquefied natural gas (R-LNG), purchased at an average price of 1,769 rupees ($18.55) per million BTU, which is about 64% higher than the same period a year earlier.

Indian Power Firms Snap Up Gas to Meet Night-Time Cooling Demand

May 29, 2026

Indian power firms quadrupled natural gas purchases via the Indian Gas Exchange to meet surging summer cooling demand, marking a 350% jump from last year despite rising prices and supply shortfalls.

bloomberg

2026-05-29

Indian Power Firms Snap Up Gas to Meet Night-Time Cooling Demand

Indian Power Firms Snap Up Gas to Meet Night-Time Cooling Demand

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