India Turns to US and Nigeria as Qatar LNG Flows Dry Up

India's liquefied natural gas (LNG) import map has undergone significant changes due to the ongoing US-Iran conflict. In August, India received no shipments from Qatar, which was its dominant supplier until now. The US emerged as the largest LNG supplier for India in August, accounting for 35 percent of the country's natural gas supply.

The US supplied 858,500 tonnes of LNG to India in August, a 18.6 percent increase from July. Nigeria was the second-largest supplier, providing 540,700 tonnes, an increase of 84 percent from July. These developments have been attributed to Qatar's inability to resume full capacity after Iran struck its Ras Laffan Industrial City in March.

The Indian government has been diversifying LNG imports to mitigate risks from geopolitical shocks. According to ICRA senior vice president and co-group head Prashant Vasisht, it could take months for Qatar to bring its full capacity back online. India's LNG imports rose 5.2 percent to 2.5 million tonnes in August from 2.3 million tonnes imported in July.