What is the India LPG & LNG Crisis In 2026? (Quick Answer)
India imports approximately 60% of its total LPG and around 80% LNG needs from Middle Eastern nations, which export via the Strait of Hormuz. The joint operation between the US and Israel, under Operation Epic Fury (launched on February 28, 2026), has disrupted the supply of LNG and LPG exports as insurers withdraw war-risk coverage.
This resulted in India’s LPG and LNG supply corridors being blocked. The government responded by capping commercial use and by emergency procurement from the USA, Norway, Australia, and Russia. This article gives you the full picture of India’s LNG imports.
India LPG & LNG Crisis 2026: The Strait of Hormuz Shutdown
Over the years, India’s industrial activity and urban energy consumption have increased fuel requirements. This rising demand has positioned India among the world’s fourth-largest LNG importers and Second-largest LPG importers by value. India’s total LNG import value reached approximately $12.8 billion, according to Export Genius customs records. LPG demand has grown around 3-4% annually, driven by Pradhan Mantri Ujjwala Yojana, which expanded LPG connections from 14 crore in 2014 to over 33 crore in 2024. India’s energy passes through a single 33-Kilometer-wide chokepoint, the Strait of Hormuz.
The Geopolitical Shock to India’s Energy Supply
On February 28, 2026, India’s LPG and LNG imports came under threat when the US and Israel struck Iranian energy infrastructure under a coordinated operation. This resulted in the world’s most critical energy chokepoint ceasing to function for international trade.
India’s LNG supply crisis and its LPG shortage are two sides of the same coin, both driven by the same geopolitical shock. Understanding the full trade data picture –
Who supplies India
Which ports receive it
And which global exporters and terminals dominate the market
These are essential for every importer, exporter, procurement manager, and policy analyst navigating the 2026 crisis.
Note: All LPG and LNG trade data in this article is considered under HS code 2711.11
India’s Top LNG Import Source 2025: Which Countries Supply the Most LNG to India?
India LNG import reveals stark concentration risk. The country sources the majority of the LNG and LPG from the Middle East, which accounts for nearly 80% of India’s total LNG imports. This shows the country’s heavy Gulf dependency and greatest vulnerability, while making the USA, Australia, and other LPG and LNG suppliers a strategic partners. India’s top LNG partners are mentioned below –
- Qatar, UAE, and Oman combined account for approximately 67% of India’s LNG imports, all of which pass through the Strait of Hormuz.
- Qatar supplies nearly half of all India’s LNG import needs with $6,108 million in 2025. This transit via the Strait of Hormuz makes it the single highest-risk supply line in India’s energy chain.
- UAE is the second largest source of India’s LNG import with $1,160 million worth in 2025.
- The US entirely bypasses the Persian Gulf, rerouting through the Panama Canal or Cape of Good Hope, making it India’s primary diversification and alternative source of LNG and LPG imports.
- Australia is not a major Indian LNG import source, but a geographically ideal, shortest distance, zero Strait of Hormuz exposure, and a perfect partner for alternative suppliers.
| Top LNG Suppliers India 2025 | Value USD Million | Percentage |
| Qatar | $6,108 | 47.54% |
| UAE | $1,160 | 12.45% |
| USA | $1,376 | 10.71% |
| Oman | $951 | 7.4% |
| Angola | $939 | 7.31% |
| Nigeria | $850 | 6.61% |
| Mozambique | $326 | 2.54% |
| Australia | $202 | 1.57% |
| Cameroon | $171 | 1.33% |
| Singapore | $163 | 1.27% |
Source: Export Genius customs shipment records, 2025
Top LPG and LNG Imports Port in India 2025: Port-Wise Unloading Data
As per the LNG Import shipment records, India’s LNG import infrastructure is concentrated in some specialised terminals. The port-wise data for 2025 reveals concentration. Dahej port, with $8,207 million, handles nearly two-thirds of all LNG import value. This concentration creates both efficiency and vulnerability.
All Indian import ports are currently operationally open and capable of receiving LNG and LPG cargo from non-Hormuz origins. This is perfect for receiving and processing non-Middle Eastern LNG from the USA, Australia, Norway, and Russia, as India’s top LNG company scrambles to replace disrupted supply chains.
Gujarat holds three of the seven top LNG import ports, Dahej, Magdala, and Mundra, accounting for more than 70% of India’s LNG import value. This concentration reflects its proximity to the state gas pipeline network and its role as India’s primary industrial gas hub.
T
| Port of Unloading | Total Value M USD (Mn) | Percentage |
| Dahej port sea | 8,207.2 | 63.87% |
| Dharma port sea | 947 | 7.37% |
| Dabhol port | 931.4 | 7.25% |
| Magdala port sea | 924.1 | 7.19% |
| Kamarajar port | 746.3 | 5.81% |
| Cochin sea | 606.6 | 4.72% |
| Mundra Port & amp sez ltd | 486.8 | 3.79% |
Source: Export Genius customs shipment records, 2025
India’s Alternative LNG Suppliers: Top Countries India Can Rely On
India has spent decades building one of Asia’s most ambitious LNG import networks, 7 receiving terminals, 33+ crore cooking gas connections, and long-term supply deals with the world’s top producers. What India did not adequately plan for was the possibility of losing access to half of the global LNG and LPG supply in a single week. And that is precisely what happened in March 2026.
India relies heavily on Middle Eastern LNG shipments passing through the Strait of Hormuz, exposing its energy supply to geopolitical risks. However, global export data highlights diversification opportunities, allowing India to strengthen energy security by sourcing LNG from alternative suppliers worldwide
Alternative LNG Suppliers for India Beyond the Gulf
- Australia recorded LNG exports worth USD 45.3 billion, making it the world’s largest LNG exporter and a reliable alternative supplier for India.
- United States exported USD 28.9 billion in LNG, supported by strong shale gas production and expanding export terminals.
- Russia shipped USD 17.6 billion in LNG, driven by vast gas reserves and growing Arctic LNG projects.
- Malaysia and Indonesia exported USD 13.3 billion and USD 6.7 billion, strengthening Southeast Asia’s role in global LNG supply.
India is not short of options. It’s short of time. This table shows exactly which countries hold the supply India needs and which India’s procurement teams must call first.
| Top LNG Exporters 2024 | Value USD Billion |
| Australia | 45.3 |
| USA | 28.9 |
| Russia | 17.6 |
| Malaysia | 13.3 |
| Indonesia | 6.7 |
Source: Export Genius customs shipment records, 2025
India’s Emergency Response to the LPG & LNG Crisis: Government Actions
To tackle LPG & LNG shortage, the government of India has implemented a multi-order emergency response triggered by the Strait of Hormuz crisis. These measures reflect the extent of exposure revealed in the 2025 trade data above – and underscore why diversification away from Hormuz-dependent supply was critically overdue.
Domestic Production Ramp-Up
All Indian refineries directed to divert all C3/C4 hydrocarbon streams exclusively to LPG production — achieving a 28–30% domestic output increase within 5 days.
Russia: Crude imports increased 50% in March 2026, boosting LPG co-production at Indirefineries.
Supply Prioritisation
Household 14.2kg cylinder supply: 100% priority.
Hospitals and schools: uninterrupted list.
Commercial 19kg cylinders: capped at 20% of the average monthly requirement.
Anti-Hoarding Measures
Essential Service Maintenance Act (ESMA) invoked.
DAC (Delivery Authentication Code) coverage expanded from 50% to 90%. Penalty: up to 7 years imprisonment for hoarding.
Alternative Import Routes Activated
Panama Canal route: active for US LNG supply.
Cape of Good Hope route: active for Atlantic basin supply.
Direct Australia-to-India routing: active.
Conclusion
India’s LNG & LPG imports are overwhelmingly dependent on the Gulf region. Qatar supplies more than half of India’s total LNG supply. The US-Iran-Israel conflict of 2026 has disrupted around 80% of India’s LNG supply. To meet domestic consumption, the country is actively pursuing emergency spot cargoes from the USA, Australia, Norway, Peru, Russia, and West Africa. The 2025 trade data in this article gives you the baseline against which this pivot must be measured.
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FAQs – India LPG & LNG Shortage
Which country supplies the most LNG to India?
Qatar is India’s largest LNG supplier, accounting for half of India’s total LNG imports in 2025 ($6,108 million). The UAE is the second largest with $1,160 million, followed by the USA, Oman, Angola, and Nigeria.
How is India replacing Gulf LNG supply in 2026?
India is replacing Hormuz-exposed Gulf LNG supply through US LNG, Australian LNG, Norwegian LNG, Peru/Atlantic LNG, and Russian LNG with a strategic partnership.
Which country is the largest LNG exporter in the world?
Qatar is the world’s largest LNG exporter, accounting for approximately 40% of global LNG export value. The USA is second, followed by the UAE, Peru, and Trinidad and Tobago.
What is the HS code for LNG imports in India?
LNG (Liquefied Natural Gas) is classified under HS code 2711.11 in international trade. For LPG, the relevant codes are: 2711.12 (Propane, liquefied), 2711.13 (Butane, liquefied), and 2711.19 (Other petroleum gases, liquefied). These HS codes are used for customs data research, shipment tracking, and import duty classification in India.