Oman replaced the US as India’s largest liquefied natural gas (LNG) supplier in September, accounting for 27 percent of the shipments, as the country’s import basket underwent a major shift during the month.
The share of Qatar, once the country’s dominant supplier, plunged to 4.3 percent, as India continues to diversify its energy sourcing in the wake of West Asia conflict.
The country imported 585,000 tonnes of LNG from Oman in September, up 11.6 percent from August, data from commodity analytics firm Kpler shows.
Nigeria emerged as the second-largest supplier, ahead of the US, with shipments reaching 351,000 tonnes, though the volume was 35 percent lower than August.
Imports from the US, which was the largest source in August supplying 848,000 tonnes, also fell 59 percent, making it the third-largest supplier.
The US accounted for 16 percent of India’s September LNG imports.
Qatar, one of India’s biggest LNG suppliers before the US-Iran conflict, was the sixth-largest supplier, with imports of around 94,000 tonnes behind the UAE (311,000 tonnes) and Angola (205,000 tonnes).
Qatar used to account for around 45 percent of India’s LNG imports. However, supplies have been disrupted after Iran struck its Ras Laffan Industrial City in March, its LNG hub and single largest supply of natural gas to India.
ICRA’s senior vice president and co-group head Prashant Vasisht said that Qatar accounts for 19 percent of the global LNG supply and it could take months to bring the full capacity back online after the Iran attack.
Natural gas is a cleaner fuel for fertiliser production, industrial heating, power generation, and urban transportation. India imports about half of its total LNG consumption, with roughly 60 percent transiting through the Strait of Hormuz from West Asian suppliers such as Qatar and the UAE.
The country’s cumulative LNG imports fell by 14 percent to 2.17 million tonnes in September against 2.5 million tonnes in August.
"The number of countries from which we are importing has increased significantly on all three fronts, LPG, LNG as well as crude,” an official had told Moneycontrol.
“We will continue to diversify our sourcing to mitigate risks from any geopolitical shock and not depend on a particular geography. LNG facilities are coming up all over the world, including Mozambique and Brazil. We have stepped up gas supplies from a lot of countries like Canada, US, Algeria, among others.”
While India’s crude supplies remain relatively insulated from the escalation in West Asia due to diversification, LPG and LNG imports are more vulnerable, analysts say.
Unlike crude, these markets have fewer short-term substitution options and remain more exposed to Gulf supply and shipping disruptions, Sumit Ritolia, lead research analyst, refining and modelling at Kpler had said.