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Mumbai.US becomes India’s largest LPG supplier as LNG imports shift sharply from Qatar amid Hormuz crisis

The United States has emerged as India’s largest LPG supplier, meeting nearly 67% of the country’s cooking gas requirement after the Hormuz crisis disrupted supplies from the Middle East. Union Petroleum and Natural Gas Minister Hardeep Singh Puri said this at a Confederation of Indian Industry (CII) event on Friday, highlighting a major shift in India’s energy security strategy.

The change has also extended to liquefied natural gas (LNG), with the US overtaking Qatar as India’s biggest supplier. According to an Equirus Securities report, India’s LNG imports from Qatar plunged 91% between May and July 2026, while supplies from the US jumped 253% during the same period.

LNG sourcing shifts beyond Qatar amid crisis

India imported 7.08 million tonnes (MT) of LNG between May and July, 15% more than during the corresponding period last year. Imports have increasingly shifted towards the US, Africa and non-Qatari Middle Eastern suppliers as disruptions affected traditional supply routes.

During the three-month period:

The US supplied 2.19 MT, becoming India’s largest LNG supplier. Nigeria followed with 1.31 MT. Qatar’s supplies fell to just 0.23 MT, down 91% year-on-year. Oman recorded the sharpest growth, with supplies rising 341%.

Gas demand rebounds as LNG consumption rises

India’s overall natural gas demand also recovered, reaching 197 million metric standard cubic metres per day (mmscmd) in June, up 7% from May and 2% from a year earlier.

Excluding the power sector, demand stood at 176 mmscmd, close to pre-crisis levels. LNG consumption rose 13% from May and 10% year-on-year to 110 mmscmd, while domestic gas consumption remained steady at 87 mmscmd. India’s dependence on imported gas stood at 56%.

The city gas distribution (CGD) sector remained the largest consumer at 58 mmscmd, followed by fertiliser at 55 mmscmd and other industries at 41 mmscmd. Power demand recovered to 21 mmscmd, refineries consumed 15 mmscmd and petrochemicals 7 mmscmd, still 48% below last year.

Global prices remain high as India maintains imports

Despite elevated global prices, India’s LNG imports remained firm. LNG berth arrivals stood at 2.4 MT in May and 2.3 MT in June, taking first-quarter FY27 arrivals to 6.2 MT. Provisional figures put July arrivals at 2.1 MT.

Equirus said China’s LNG imports had moved above seasonal averages, while European gas storage stood at 58% ahead of winter, below the historical average. Asian spot LNG prices remained above $20 per million British thermal units (mmbtu).

India maintained supplies despite Hormuz disruption

Puri said the Middle East crisis and closure of the Hormuz route did not lead to shortages of LPG or crude oil in India. Before the conflict, India sourced around 50% of its crude oil, 90% of LPG and 60% of other gas through the route.

He said India quickly diversified imports and increased domestic LPG production. Puri added that none of the country’s more than 107,000 fuel outlets ran dry, compared with around 52,000 outlets in 2014.

India expands energy security beyond immediate crisis

India has widened its crude supply base from 27 to 41 countries while expanding city gas distribution coverage from 55 geographical areas to 309. The country has also maintained roughly 60 days of crude oil cover.

At the same time, the government has approved the Rs 84,000-crore Samudra Manthan programme to promote deep-sea oil and gas exploration. Puri said private players, rather than the government, would undertake drilling.

The government will provide financial support of up to Rs 650 crore per well, or 50% of drilling costs, to encourage investment in high-risk offshore exploration. Equirus expects India’s gas demand to remain strong in July, although some moderation could occur in August due to seasonal factors and activity around Morbi.