India has secured its maritime LNG supplies. LNG imports from the US increased by 252.8% year-on-year (YoY) [REPORT]

By Marek Grzybowski Strona główna Porty Morskie, Terminale, 

By 2026, India could absorb up to 25 million tons of LNG. India increased its LNG imports at a time when many countries were reducing theirs due to the blockade of supplies through the Strait of Hormuz. The Indian government quickly entered the global LNG market and diversified its supply sources. This ensured stable gas supplies for industry and households. By not dramatically increasing gas prices in the domestic market, it also ensured that the economy and consumption remained stable.

India is “the world’s third-largest importer and consumer of crude oil, purchasing approximately 90% of the 21.85 million tons of LPG from the Middle East in 2025. Imports accounted for approximately 66% of India’s LPG consumption,” reports Nidhi Verma, a Reuters correspondent in New Delhi, citing government sources.

India’s liquefied natural gas imports increased between May and July of this year. India has managed to compensate for the supply shortfall resulting from the blockage of tanker passages in the Strait of Hormuz. Kpler’s ship traffic monitoring data shows that India imported 7.08 million tons of LNG during May, June, and July, a 15.4% increase compared to the same period last year.

“The Indian market has shown greater resilience. Since the last decline in March-April, imports in July 2026 alone have increased by almost 16% compared to the previous year,” Sukalp Sharma quotes Sonal Ranjan, LNG and natural gas analyst at Kpler. The United States and Oman continue to dominate the supply structure, supplying approximately 30% and 20% of India’s total LNG supply, respectively.

“Although gas supply restrictions, which were introduced to ensure adequate supplies to key sectors, were lifted in July, we also observed higher demand in the May-June period, demonstrating market resilience even in high-price environments,” explains Sonal Ranjan.

Long-Term Contracts

India will become the world’s most active buyer of LNG under long-term contracts in 2025. Public and private operators have contracted 8.4 million tons of LNG annually, reports Charles Kennedy of Oilprice.com, citing this year’s report by the International Group of LNG Importers (GIIGNL).

Last year, India opened its eighth LNG import terminal, planning to nearly double the share of natural gas in its energy mix to around 15% within a decade. India was the most active end-user last year. Among the major customers were IndianOil (4.7 MTPA – million tons per year), and among the smaller ones: GAIL (1 MTPA), GSPC (1 MTPA), Torrent Power (0.69 MTPA), and BPCL (0.5 MTPA).

The contracted long-term LNG supply volumes reflect “a coordinated expansion of long-term import capacity driven by growing domestic gas demand,” GIIGNL analysts praise the Indian government’s strategy in a report. The Indian government wasn’t alone in being so cautious.

GIIGNL analysts say that 2025 was “an exceptionally active year for LNG contracting” for the entire LNG sector. Last year, 83 long-term sales and purchase contracts (SPAs) were signed. This was almost double the number signed in 2024, when 47 contracts were signed.

Diversifying LNG supplies by sea to India. Source: Surabhi Singh,

Supply Diversification

“We are committed to diversifying LNG imports to ensure security of supply and mitigate risks arising from regional disruptions or geopolitical events,” Deputy Petroleum Minister Suresh Gopi told MPs, as quoted by Reuters in correspondence from New Delhi.

However, long-term contracts failed to guarantee stable supplies due to the war. After a brief surge in January, India’s LNG imports declined in March and April. The main reason was a sharp decline in LNG imports from Qatar, India’s largest supplier. Qatar’s loading terminals are located in the Persian Gulf. The blockade of the Strait of Hormuz virtually cut off India from a stable supply of LNG via tankers previously traversing the Strait of Hormuz without any obstacles.

With one traditional trade route cut off from the global LNG supply network, the Indian government actively sought alternative sources of supply. LNG supplies from the US, Oman, Nigeria, and Angola helped fill the gap and prevent a further decline in overall imports. Finding alternative supply sources proved to be a strategic challenge.

“This was important because LNG is used in many areas of everyday life and industry, including municipal gas networks, fertilizer plants, and other gas-using industries,” explains Surabhi Singh in an August article on the website https://thepamphlet.in. She emphasizes that “The crisis also demonstrated how closely linked India’s gas supply system is to the Persian Gulf.”

Until now, a significant portion of India’s LNG imports have been transported through the Strait of Hormuz. Many analysts’ fears that any tensions in the region could quickly impact gas supply and prices have been confirmed. India felt this in the first weeks of the conflict. In India, industrial customers and consumers faced supply delays and supply constraints for some customers.

Lower supplies from the Middle East limited India’s LNG consumption to about 14.7 million tons in the first half of 2026. Imports fell 28% to about 7.5 million tons, yet the decline in domestic consumption was only about 8% compared to the previous year, according to Indian government data.

This year, industrial and LNG consumption in India is expected to fall to 30 million tons due to low supplies, Reuters reported, citing a source in India. LNG imports could rise to about 20 million tons in 2027, as demand rises to about 31 million tons, according to Nidhi Verma, a Reuters correspondent in New Delhi.

After the domestic market turmoil, India was able to respond quickly. Surabhi Singh notes that the Indian government, “Instead of relying on just one or two suppliers, the government has adapted by sourcing gas from more distant and diversified sources.” “This type of adjustment doesn’t completely eliminate risk, but it mitigates the shock when one region becomes unstable,” emphasizes Surabhi Singh.

A steady supply of gas to households in India is crucial because LNG is part of the broader natural gas supply chain, which supports the supply of gas essential for household use. For industry, particularly fertilizer producers and city gas companies, a steady supply of LNG helps avoid disruptions and supply problems.

Some major LNG-importing countries have restricted imports due to high prices caused by regional conflict and disruptions in the Strait of Hormuz. India has adopted a different strategy, reports Sukalp Sharma in The Indian Express, explaining: “The government has prioritized supply over price, taking into account demand from various sectors, including city gas distribution (CGD), fertilizers, power generation, and ceramics.”

Gas for India on maritime routes

During the crisis period of March-April, India’s liquefied natural gas imports fell by almost 13% compared to the same period of the previous year. India is dependent on LNG imports. For the economy to function smoothly, LNG imports must meet approximately half of the country’s natural gas demand. In 2025, approximately 60% of these imports would come from the Strait of Hormuz, primarily from Qatar and the United Arab Emirates.

India’s LNG imports are rising as the US, Nigeria, and Oman compensate for the loss of supply volumes through the Strait of Hormuz. With supplies of 2.19 million tons, the US was India’s main source of LNG during the May-July period. Nigeria (1.31 million tons) was a significant supplier, as were Oman (1.22 million tons) and Angola (0.8 million tons), according to Kpler data.

LNG imports from the US increased by 252.8% year-on-year (YoY), and from Oman by 340.9%. Imports from Nigeria and Angola increased by 123.8% and 71.3%, respectively. In 2025, average monthly LNG imports from the US amounted to just 0.2 million tons, while from Nigeria, Oman, and Angola, the figures were 0.1 million tons, 0.2 million tons, and 0.1 million tons, respectively, according to Sukalp Sharma.

(With) Gas through the Strait of Hormuz

After a slump in March, April, and May, Indian LNG imports from the United Arab Emirates returned to high volumes in June and July of this year. In May, June, and July, LNG imports from the United Arab Emirates fell 34.4% year-on-year to 0.55 million tonnes. Supplies from Qatar fell 91.3% to 0.23 million tonnes. In 2025, average monthly LNG imports from Qatar reached 1 million tonnes, and from the UAE 0.3 million tonnes, according to The Indian Express.

LNG imports through Asian countries. Source: “Global LNG Hub”, https://globallnghub.com

According to market observers, UAE gas suppliers managed to export significant LNG cargoes despite the blockade of the Strait of Hormuz because tanker captains used tactics such as disabling LNG vessel transponders.

However, it seems more likely that LNG tanker operators “made deals” with representatives of the Islamic Revolutionary Guard Corps (IRGC) and incurred additional fees for passing through unmined routes near the Iraqi coast.

Gas suppliers from Qatar and the UAE, through various maneuvers and arrangements with Iraqi officials, exported some cargoes to India. Gulf countries, and with them India, also benefited from the revival of transit through Hormuz in the three weeks following the signing of a preliminary peace pact by the US and Iran on June 17.

Security First

The most important lesson from the Iraqi government’s actions concerns the strategy and tactics for ensuring the country’s energy security, particularly oil and gas supplies. India cannot fully control international conflicts, but it can reduce the risk of energy supply.

“India plans to buy up to a quarter of its imported liquefied natural gas from the United States in 2027, which will reduce the country’s dependence on the Middle East and support efforts to conclude a trade agreement with Washington,” Nidhi Verma, a Reuters correspondent in New Delhi, told Reuters, citing three sources familiar with the matter.

State-owned refiners Indian Oil Corp (IOC.NS), Bharat Petroleum Corp (BPCL.NS), and Hindustan Petroleum (HPCL.NS) are expected to announce tenders within one to two months for LPG supplies from the US in 2027, sources said. They also added that a delegation of the companies will likely travel to the United States next month to discuss supply issues, according to a Reuters correspondent in New Delhi.

The Indian government is developing a gas supply security strategy by expanding its supplier base and supply sources. Long-term planning and building supply security through long-term contracts are crucial. Expanding the network of LNG receiving terminals, which are well integrated into the distribution network, is also crucial.

“India has committed to increasing its energy purchases from the United States by $10-25 billion in the near future. Both countries have also agreed to reach $500 billion in bilateral trade by 2030,” Nidhi Verma determined.

It’s crucial to act proactively, and in crisis situations, develop maritime logistics and flexible import channels. Data from mid-year indicate that this strategy is yielding tangible results. In a relatively short time, supply losses from Qatar were offset by LNG imports from the US, Oman, Nigeria, and Angola.