India Diversifies Energy Sources Amid Gulf Disruptions

The Indian government is working to reduce dependence on imported cooking gas and secure supplies from alternative sources. To achieve this, it has approved an incentive scheme for city gas distributors to increase domestic piped natural gas (PNG) connections starting September 1, 2026.

According to data from maritime intelligence firm Kpler, India has sharply increased purchases of liquefied petroleum gas and liquefied natural gas from the United States. In August, the country imported about 0.62 million tonnes of LPG from the US, accounting for more than 73% of its total LPG imports.

India's traditional suppliers in the Gulf region have seen a significant decline in LPG exports due to disruptions linked to the conflict in West Asia. The Strait of Hormuz, a key shipping route for crude oil and gas, has been effectively closed since the outbreak of war between Iran and the US.

The shift towards US supplies is also visible in liquefied natural gas (LNG) imports, with India's LNG sourcing pattern becoming more diversified. LNG imports from Qatar, India's largest source of the fuel, fell to zero in April, while US supplies rose to about 0.75 million tonnes in August.