A Sudden Shift in India’s LNG Supply Chain
September’s import figures reveal a dramatic realignment of India’s liquefied natural gas (LNG) sourcing. Oman, which had been a modest contributor, surged to 27 % of all LNG shipments, overtaking the United States, which fell to 16 %. The change reflects a broader diversification strategy amid geopolitical tensions in West Asia.
Numbers Behind the Shift
Commodity analytics firm Kpler reported that India imported 585,000 tonnes of LNG from Oman in September, an 11.6 % rise over August. Nigeria entered the top‑five list with 351,000 tonnes, surpassing the United States, whose August supply of 848,000 tonnes dropped 59 % to 151,000 tonnes. The United States now ranks third in the country’s LNG basket.
Qatar, once the dominant supplier, saw its share plummet to 4.3 % from roughly 45 % in earlier years. The decline follows the March attack on Qatar’s Ras Laffan Industrial City, the nation’s sole LNG hub, which has disrupted exports for months. The UAE and Angola remain significant players, with 311,000 and 205,000 tonnes respectively.
Why the Diversification Matters
India imports about half of its total LNG consumption, and roughly 60 % of that volume transits the Strait of Hormuz. A concentration on a single region exposes the country to supply shocks. By broadening its supplier base, India aims to mitigate risks from geopolitical disruptions and shipping constraints.
An official told Moneycontrol that the number of LNG suppliers has "increased significantly on all three fronts, LPG, LNG as well as crude," and that the government will continue to diversify sourcing to avoid overreliance on any one geography.
Context: The West Asian Tension
The United States was the largest LNG supplier in August, but the Iran‑US conflict and the subsequent attack on Qatar’s LNG hub have forced a reevaluation of supply routes. Natural gas is a cleaner fuel for fertiliser production, industrial heating, power generation and urban transport, making stable imports vital for India’s energy security.
ICRA’s senior vice president Prashant Vasisht noted that Qatar accounts for 19 % of global LNG supply and that restoring full capacity after the attack could take months.
What to Watch Next
- India’s LNG import volumes are expected to continue fluctuating as new contracts with countries like Mozambique, Brazil, Canada, Algeria and the United States are negotiated. - The pace at which Qatar can restore its Ras Laffan hub will influence future supply dynamics. - Any further geopolitical developments in the Gulf could prompt additional shifts in India’s LNG sourcing strategy.
Bottom Line
September’s data underscores a decisive pivot in India’s LNG import strategy, with Oman now leading the pack and Qatar’s influence sharply reduced. The move reflects a broader intent to diversify energy sources and reduce vulnerability to regional shocks.