India is accelerating a strategic shift in its liquefied natural gas (LNG) procurement to reduce dependence on the Gulf region amid escalating tensions in West Asia. The conflict has disrupted supplies, particularly from Qatar, which provides 40 to 47 per cent of India’s annual LNG imports. 

Production halts at Qatar’s Ras Laffan facility and instability in the Strait of Hormuz have exposed vulnerabilities in India’s energy security, prompting New Delhi to overhaul its national energy strategy.

For decades, the Gulf has anchored India’s energy matrix, with Qatar alone supplying nearly half of its LNG needs. However, recent events have highlighted this reliance as a major strategic liability. In response, India is fast-tracking a diversification programme to build a more balanced LNG portfolio, ensuring long-term national security and resilience against future disruptions.

Central to this pivot are expanded supply chains from the United States, Australia, and African nations, alongside Russia, Norway, Canada, Peru, Angola, and Nigeria.

To avoid the volatile Strait of Hormuz, shipments from the US will leverage routes like the Panama Canal, offering safer alternatives. Australia has emerged as a priority due to its shorter and more secure shipping routes, minimizing exposure to regional instability.

This realignment prioritises supply security over cost in the short term, as Indian importers such as GAIL, Petronet LNG, and Indian Oil turn to the spot market. Spot prices have spiked to approximately USD 24 to 25 per million British thermal units (MMBtu), imposing a financial premium that is nonetheless deemed essential for continuity. Domestic gas and imported LNG are now strictly allocated to critical sectors, including household piped natural gas (PNG), compressed natural gas (CNG) for transport, and fertilizer production.

Beyond sourcing diversification, the government is enhancing the physical security of energy supply lines. Engagements with global suppliers include exploring safer shipping routes and potential naval escorts for LNG vessels in high-risk areas.

India is also deepening ties with major traders like Total Energies, Vitol, and Trafigura, as well as state firms such as Algeria’s Sonatrach and the UAE’s ADNOC, to strengthen its supply network.

These measures reflect a comprehensive response to the crisis, blending immediate mitigation with a forward-looking strategy. The pivot underscores India’s recognition that over-reliance on any single region poses unacceptable risks to its economic and strategic interests.

By broadening its LNG footprint, New Delhi aims to fortify resilience against future disruptions and safeguard national energy security.

News18