India’s LNG Import Costs Surge On Higher Prices, Freight

Mumbai: India’s LNG imports climbed sharply during the first four months of the current financial year as the country increased purchases from the US amid supply disruptions triggered by the West Asia crisis.

LNG imports rose 24% to $5.6 billion during April-July, compared with $4.5 billion in the corresponding period of the previous financial year, according to data compiled by the Ministry of Petroleum and Natural Gas.

The increase comes as disruption around the Strait of Hormuz affects supplies from Gulf producers, prompting India to increase purchases of LNG and LPG from alternative markets, particularly the US.

July Imports Rise

In July, India’s LNG imports increased 9.1% to $1.2 billion from $1.1 billion in July 2025. Import volumes rose 1.5% to 2,915 million metric standard cubic metres (mmscm), against 2,872 mmscm a year earlier.

Higher energy prices linked to the West Asia crisis have pushed up the import bill. Shipping costs have also increased as cargoes travel longer distances.

Suppliers Diversified

India has expanded its LNG sourcing network to 15 countries from six earlier to reduce exposure to supply disruptions. Its crude oil supplier base has similarly widened to 41 countries from 27.

A senior official said diversification has reduced dependence on individual countries, regions and transit routes, strengthening India’s ability to manage supply disruptions and market volatility.

US Supplies Surge

India imported about 0.62 million tonnes of LPG from the US in August after receiving 0.89 million tonnes in July, according to Kpler data. US supplies accounted for more than 73% of India’s LPG imports.

July’s US shipments were almost equal to the record 0.891 million tonnes imported from the UAE in October 2025.

Meanwhile, UAE supplies fell to about 140,000 tonnes in August, while Qatar shipped around 60,000 tonnes. Saudi Arabia supplied no LPG to India in July or August.

The changing import mix highlights India’s push to secure energy supplies as geopolitical tensions disrupt traditional sourcing routes.