India's LNG Imports Rise Amid Strait of Hormuz Crisis

India's Liquefied Natural Gas (LNG) imports have shown resilience in the face of the Strait of Hormuz crisis, according to recent data. Despite a decline in March and April, LNG imports increased by 15.4% in May-July compared to the previous year, reaching 7.08 million tonnes.

The country's strategic shift towards alternative regions has allowed it to augment LNG import volumes during this period. The US, Nigeria, and Oman have emerged as major sources of LNG, with imports from these countries increasing by 252.8%, 123.8%, and 340.9% respectively compared to the previous year.

India prioritized LNG supply over price, catering to demands from sectors such as city gas distribution (CGD), fertilizers, power, and ceramics. The country's market showed resilience with July imports up by almost 16% year-on-year, with the US and Oman being dominant suppliers, accounting for about 30% and 20% of total LNG supply respectively.

LNG prices are expected to remain high, possibly reaching $19-20 per million British thermal units, affecting price-sensitive sectors like industry and power. India may need to compete with Europe and Northeast Asia for LNG, given the ongoing supply constraints caused by the Strait of Hormuz crisis.