With the heavy disruption in liquefied natural gas (LNG) imports from key suppliers Qatar and the UAE, the US emerged as India’s largest source of super-chilled gas in May, followed by Nigeria, Oman, and Angola, as New Delhi’s LNG imports recovered to pre-war levels despite the surge in international LNG prices. While some major LNG importing countries reduced imports amid sky-high prices, India prioritised supplies over price amid demand from various sectors, which include city gas distribution, fertiliser, power, and ceramics.
The effective closure of the Strait of Hormuz has upended the regular flow of LNG to India from key suppliers Qatar and the UAE, leading to a scramble for LNG cargoes from alternate geographies and a recasting of New Delhi’s natural gas import basket. Notably, the supply disruption has not been as severe as initially anticipated due to a combination of alternative suppliers raising exports and demand curtailment in various parts of the world.
India depends on LNG imports to meet about half of its natural gas requirement, and about 60% of those imports came through the critical maritime chokepoint of the Strait of Hormuz, primarily from Qatar, and also the UAE. The two Gulf countries are major LNG exporters at the global level as well.
Vessel movements through the Strait of Hormuz—the narrow waterway between Iran and Oman that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea—are all but halted due the West Asia conflict. The Strait is a major chokepoint for global energy flows, accounting for a fifth of international oil and LNG shipments.
Ship tracking data from commodity market analytics firm Kpler shows that India imported 2.2 million tonnes of LNG in May, 13.5% higher over April, and 32% over March, which was the first month impacted by the West Asia war and the consequent closure of the Strait of Hormuz. LNG imports in May were, in fact, 6% higher over the corresponding month of last year, and 6.4% higher than the 2025 monthly average.
As no LNG volumes came to Indian shores from Qatar for the second month in a row, and just 0.1 million tonnes came from the UAE, LNG importers continued with their pivot to alternative suppliers—that don’t depend on the Strait of Hormuz—to secure emergency spot cargoes. Volumes from the US tripled to 0.9 million tonnes, accounting for about 41% of India’s overall LNG imports for the month, as per Kpler data. In 2025, the average monthly LNG imports from the US were 0.2 million tonnes.
Nigeria was in the second spot with 0.5 million tonnes—flat on a month-on-month basis—followed by Oman and Angola at 0.3 million tonnes each. In April, LNG imports from Oman were 0.6 million tonnes, while supplies from Angola stood at 0.3 million tonnes. Although Oman is located in West Asia, it has a sizable coastline facing the Arabian Sea and the Gulf of Oman, and doesn’t depend on the Strait of Hormuz for the transit of its cargoes. Last year, the average monthly LNG imports from Nigeria, Oman, and Angola were 0.1 million tonnes, 0.2 million tonnes, and 0.1 million tonnes, respectively.
|
LNG IMPORT VOLUMES (million tonnes)
|
| SUPPLIER |
May 2026
|
Monthly average in 2025
|
| US |
0.9 |
0.2 |
| Nigeria |
0.5 |
0.1 |
| Oman |
0.3 |
0.2 |
| Angola |
0.3 |
0.1 |
| UAE |
0.1 |
0.3 |
| Qatar |
0 |
1.0 |
| Others |
0.1 |
0.2 |
| Source: Kpler |
In 2025, the average monthly LNG import volumes from Qatar stood at 1 million tonnes, followed by imports from the UAE at 0.3 million tonnes. In March-April, the Strait of Hormuz closure meant that just 0.06 million tonnes came from Qatar and 0.13 million tonnes from the UAE during the two months. These would have been cargoes that had transited the Strait of Hormuz before the West Asia war started with the US and Israel attacking Iran on February 28.
“This (recovery in India’s LNG imports) is notable given Asian spot LNG spiked to peak of $25/mBtu (million British thermal units) in late Mar ’26 after Qatar’s production halt and Hormuz closure, before easing to around $17-18/mBtu in May, still about 70% above pre-crisis (level of) about $10/mBtu. While South Korea and Japan cut imports, India moved in opposite direction, absorbing cost premium to keep volumes flowing,” Equirus Securities said in a note.
While high and largely inelastic demand from critical sectors like CGD and fertilisers has ensured that LNG imports remain strong, a few other sectors, most notably power and ceramics have added to the demand for LNG due to the prevailing weather and fuel supply situation.
“India’s power consumption surged over 11% yoy (year-on-year) in May ’26. Peak demand hit an all-time high of over 270 GW. With coal carrying about 70% of load and hydro 10%, Ministry of Power directed all gas-based plants on standby for heatwave shortfall coverage, turning high-cost LNG into a non-negotiable grid necessity,” Equirus said.
Additionally, sharp increase of about 0.12 million tonnes per month increase in LNG demand is estimated to have come from the Morbi ceramic clusters in Gujarat due to non-availability of propane, the primary component of liquefied petroleum gas (LPG), whose supply to industries has been heavily curtailed by the government to prioritise tens of crores of households that depend on the fuel to run their kitchens.
“Qatar supplied around 45% of India’s LNG imports in 2025 before its Mar ’26 shutdown. India rapidly rerouted to costlier alternatives…Despite paying a premium over legacy Qatari contract prices, India had no choice but to absorb cost differential. That makes India the price inelastic large LNG buyer in Asia. US LNG Atlantic routing, no Hormuz exposure is exactly what India needs now,” Equirus noted.
India depends on LNG imports to meet about half of its natural gas requirement. (Reuters) 
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