Oman now India’s top LNG supplier as imports shift amid geopolitical risks

In September, Oman surpassed the United States to become India’s top supplier of liquefied natural gas (LNG). This shift highlights India’s ongoing efforts to diversify its energy imports amid geopolitical disruptions in West Asia, according to a report. Data from Kpler revealed that India imported 585,000 tonnes of LNG from Oman last month, marking an 11.6 percent increase from August and securing a 27 percent share of total LNG imports.

Nigeria took the second spot with 351,000 tonnes, though this was a 35 percent drop from August. The US, which led in August with 848,000 tonnes, fell to third place after a 59 percent decline in exports to India, accounting for just 16 percent of September’s imports. Qatar, once India’s dominant LNG supplier with a market share of around 45 percent, dropped to sixth place, supplying only 94,000 tonnes. Other key suppliers included the UAE with 311,000 tonnes and Angola with 205,000 tonnes.

The decline in Qatari supplies followed disruptions caused by Iran’s strike on Ras Laffan Industrial City in March, a crucial LNG production hub and a major source of natural gas exports to India. Overall, India’s LNG imports dropped 14 percent month-on-month to 2.17 million tonnes in September from 2.5 million tonnes in August.

Natural gas is vital for fertiliser production, industrial heating, power generation, and urban transportation. India imports nearly half of its LNG requirements, with about 60 percent of shipments from West Asian suppliers like Qatar and the UAE transiting through the Strait of Hormuz. The government has ramped up efforts to diversify energy sources, adding supplies from countries like Canada, Algeria, the US, Mozambique, and Brazil to mitigate geopolitical risks.

Analysts noted that while India’s crude oil imports are relatively insulated due to diversified sourcing, LNG and LPG imports remain more vulnerable to supply and shipping disruptions in the Gulf because of limited short-term alternatives.