Oman was recognized as India's largest supplier of liquefied natural gas (LNG) in September 2023, accounting for 27% of the country's total import shipments. This significant change in India's import basket occurred as the country sought to diversify its energy sources.
Decline of Qatar's Share and Increase in Imports from Nigeria
Qatar's share, which was previously one of India's main LNG suppliers, decreased to 4.3%. Meanwhile, Nigeria was recognized as the second-largest LNG supplier to India with shipments weighing 351,000 tons, although this amount represents a 35% decrease compared to the previous month.
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Data shows that India imported 585,000 tons of LNG from Oman in September, an 11.6% increase compared to August. Meanwhile, imports from the U.S., which was the largest supplier in August with 848,000 tons, fell by 59% to 350,000 tons, causing the country to drop to third place among India's LNG suppliers.
Geopolitical Implications and Changes in Import Patterns
Qatar previously supplied about 45% of India's LNG imports, but following Iran's attack on the industrial city of Ras Laffan in March, which is considered India's largest natural gas supply source, supplies faced disruptions. According to experts, Qatar holds 19% of the global LNG supply and returning to full production capacity may take months.
Natural gas is considered a cleaner fuel for producing fertilizers, industrial heating, electricity generation, and urban transportation. India imports nearly half of its total LNG consumption, and about 60% of these imports come through the Strait of Hormuz from Middle Eastern suppliers such as Qatar and the United Arab Emirates.
India's total LNG imports in September fell by 14% to 2.17 million tons, down from 2.5 million tons in August. Officials stated, "The number of countries we import from has significantly increased across all areas, including LPG, LNG, and crude oil."
One official added, "We will continue to diversify our sources to mitigate risks from any geopolitical shocks and not become dependent on a specific geography. LNG facilities are being developed worldwide, including in Mozambique and Brazil. We have increased gas supplies from countries like Canada, the U.S., and Algeria."
Although India's crude oil supply has remained relatively insulated from escalating tensions in the Middle East due to source diversification, imports of LPG and LNG are more vulnerable due to supply dependence and transportation disruptions in the Gulf. Experts note that unlike crude oil, these markets have fewer short-term alternatives and are more exposed to supply and transportation disruptions in the Gulf.
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