The United States has emerged as India's leading supplier of liquefied natural gas (LNG), significantly altering India's energy import landscape between May and July 2026. This shift comes as India diversifies its energy sourcing amidst evolving global market dynamics, according to a recent report by Equirus Securities.
India's Shifting Energy Landscape
During the three-month period, India's overall LNG imports increased by 15% year-on-year, reaching 7.08 million tonnes (MT). The Equirus report highlights a dramatic decline in supplies from traditional major supplier Qatar, which saw its share plummet by 91% compared to the previous year. This substantial drop underscores a strategic move by Indian buyers to reduce dependence on single sources, potentially influenced by geopolitical factors like the conflict in West Asia mentioned in the original source.
Key Supplier Changes
The United States supplied 2.19 MT of LNG to India during May-July, marking a remarkable 253% year-on-year increase and securing its position as the top supplier. Following the US, Nigeria contributed 1.31 MT, an increase of 124%. Oman registered the sharpest growth among major suppliers, with its shipments surging 341% to 1.22 MT. Angola also became a significant contributor with 0.80 MT, while supplies from the UAE saw a 34% decline to 0.55 MT. Qatar's share, in contrast, fell to just 0.23 MT.
- United States: 2.19 MT (+253%)
- Nigeria: 1.31 MT (+124%)
- Oman: 1.22 MT (+341%)
- Angola: 0.80 MT (+71%)
- UAE: 0.55 MT (-34%)
- Qatar: 0.23 MT (-91%)
Rising Gas Demand and Diversification
The report also noted a robust recovery in India's natural gas consumption. Total gas demand in June rose to 197 million metric standard cubic metres per day (mmscmd), a 7% increase month-on-month and 2% year-on-year. Demand excluding the power sector approached pre-disruption levels at 176 mmscmd. LNG consumption alone climbed to 110 mmscmd, showing a 13% growth over May and 10% from the previous year, with import dependence standing at 56%.
Consumption growth was broad-based, with City Gas Distribution (CGD) remaining the largest consumer at 58 mmscmd, followed by the fertiliser sector (55 mmscmd) and miscellaneous industries (41 mmscmd). While petrochemical demand recovered, it still remained 48% lower than a year ago.
Global Market Context and Outlook
Globally, the Equirus report indicated increased competition for flexible LNG cargoes as China's imports moved above seasonal averages. European gas storage levels remained below historical averages ahead of winter, and Asian spot LNG prices hovered above USD 20 per mmbtu. For India, Equirus anticipates strong gas demand in July, similar to June levels, with a potential moderation in August due to seasonal factors and softer power demand.