Amid West Asia Crisis, Which Countries Overtook US to become India’s Largest LNG, LPG Suppliers? Check List, Impact on Fuel Prices

Oman beats Qatar as India’s top LNG supplier as war disrupts Gulf gas flows

India’s liquefied natural gas (LNG) imports witnessed a crucial shift in September as Oman overtook the United States to become the country’s largest supplier amid West Asia conflict interupping global energy trade. This also presents a pressing question in India: could the crisis push up cooking gas prices?

According to tanker-tracking data from Kpler, India imported 0.59 million tonnes of LNG from Oman in September, which is a growth of 11.6% from August. Meanwhile, shipments from the US dipped 60.7% to 0.34 million tonnes. Nigeria ranked second by shipping 0.35 million tonnes. 

How Oman surpassed US to become India’s top LNG supplier?

The integral factor is the Strait of Hormuz, a strategic water route linking the Persian Gulf with the Gulf of Oman and the Arabian Sea, and controlling energy shipments from main Gulf nations, including Qatar and the United Arab Emirates.

Disruptions to this primary shipping route has compelled India to diversify its energy imports. It relied at Oman, which posses a geographical leverage because its LNG export terminals can ship cargoes to global markets without crossing the Strait of Hormuz.

With multiple suppliers, India imported 11.87 million tonnes of LNG between May and September, which is a rise of 17.8% from the same period last year. During this period, Oman delivered 2.33 million tonnes, while US shipments culminated at 3.41 million tonnes.

Despite being behind Oman, shipments from the US were almost 175% higher than last year. However, the soaring demand for gas in Europe has changed global trade flows over the past couple of months. European importers have boosted purchases ahead of winter, thus triggering enormous  American LNG cargoes towards the region and widening competition for supplies.

Meanwhile, Qatar’s supplies dropped sharply as the West Asia conflict disrupted historic trade routes. 

Will This Affect LPG, LNG, Other Fuel Prices in India?

The crisis could put upward pressure on LPG prices, besides LNG. Demand from sectors such as city gas distribution and fertilisers has been consequently strong, as these industries have restricted scope to lower gas consumption. As a result, India’s LNG imports high despite the increase in prices.

The power and ceramics sectors have also fuelled demand for LNG because of weather conditions and global fuel supply issues.

However, sustained supply chain limitations owing to the West Asia conflict through the Strait of Hormuz are likely to elevate LNG prices. If prices remain high, some industries that are more sensitive to fuel costs may opt for alternative fuels.

For India, the main hurdle will be to hold sufficient gas supply to fulfill internal demand while facing  the soaring cost of imports and the disrupted supply routes through Middle East.

Why US is Also No Longer Lindia’s Largest LPG Supplier?

Besides LNG imports, India’s LPG import mix returned  towards West Asia in September, with the United Arab Emirates emerging as the country’s largest supplier as shipments from the US dropped sharply, according to maritime intelligence firm Kpler.

The UAE comprised 39% of India’s LPG imports in September, up from 13% in August, overtaking the US, which had been the largest supplier for six months.