India Diversifies LNG Supply Amid US-Iran Conflict
India has been forced to diversify its liquefied natural gas (LNG) supply chain due to the halt of shipments from Qatar in August 2026. The disruption is a result of the ongoing conflict between the United States and Iran, which has severely restricted maritime traffic through the Strait of Hormuz.
The US has emerged as the primary source of India's LNG, accounting for approximately 35% of total imports in August. Nigeria and Oman have also stepped up as significant suppliers, helping to maintain total monthly import volumes at around 2.5 million tonnes.
The shift to longer-distance routes is increasing energy import costs, creating margin pressure for downstream industries and energy importers like Petronet LNG. The reliance on distant sources is a significant change from the shorter, more cost-efficient routes traditionally used for Gulf gas.