Where Does India Get Its LPG, and Will It Run Out?
India, the world’s fourth-largest LNG importer, meets about half of its natural gas demand domestically, with key production from the Krishna-Godavari basin and northeastern fields. The rest is imported, mainly from Qatar, the US, and the UAE. Current Strait of Hormuz disruptions risk LNG and LPG supplies, but short-term shortages are limited, though prices may rise if the crisis persists.
Mumbai, March 27: India’s natural gas supply is facing renewed uncertainty as tensions linked to the Strait of Hormuz disrupt global energy flows, exposing the country’s heavy reliance on imported liquefied natural gas (LNG). The disruption, tied to the ongoing US-Israel-Iran conflict, has slowed shipments through a route that carries nearly 20% of global LNG trade.
As the world’s fourth-largest LNG importer, India depends on overseas supplies to meet roughly half of its natural gas demand. While domestic production provides some buffer, experts say it is insufficient to offset prolonged disruptions in imports. Commercial LPG Crisis Update: Centre Increases Supply to 70% Amid Iran-West Asia Conflict.
Domestic Gas Output Offers Limited Cushion
India produced about 36.4 billion cubic metres (bcm) of natural gas in 2023, meeting around 50% of its demand. A significant share comes from offshore reserves, particularly the Krishna-Godavari Basin, where deepwater fields contribute a substantial portion of output.
Onshore production is led by regions such as Assam and Tripura, with major operators including Oil and Natural Gas Corporation and Oil India Limited. However, domestic output growth is expected to remain modest through 2030, constrained by ageing fields and plateauing production in key blocks. LPG Supplies Increased for Priority Sectors; Government Says Petrol Pumps Receiving Regular Fuel.
Why India Still Relies on LNG Imports
Despite domestic production, India imports large volumes of LNG to bridge the supply gap. Imports reached about 36 bcm in 2024, driven by rising demand across industries, power generation and households.
The government aims to increase the share of natural gas in the energy mix to 15% by 2030, up from about 6-7% currently. This target is expected to further increase dependence on imports.
Supply Sources and Import Infrastructure
India sources LNG from a diversified set of suppliers, led by Qatar, followed by the United States, the UAE, Australia and others. Imported LNG is processed at coastal terminals, with Petronet LNG operating the largest facility at Dahej in Gujarat. Other terminals in Hazira, Dabhol, Kochi, Dhamra and Ennore help distribute gas across the country. New infrastructure projects are also underway to handle rising demand in the coming years.
Impact of Hormuz Strait Disruption
The Strait of Hormuz is critical for India’s energy security, with 50-60% of LNG imports and nearly 90% of LPG supplies passing through the route.
Current disruptions have led to delays in LPG deliveries, with households reporting waiting periods of up to two weeks. Fertiliser production has also been affected due to reduced gas availability, forcing cuts at some urea plants. Authorities have invoked the Essential Commodities Act to curb hoarding and stabilise supply.
Will Gas Run Out in India?
While no immediate shortages of piped natural gas (PNG) are expected, experts warn that prolonged disruptions could push prices up by 20–30% and lead to rationing in high-demand regions. City gas distributors currently maintain buffer stocks of 15-30 days, prioritising household and industrial supply over transport use.
Search for Alternatives
India is actively seeking alternative supply routes and partners. Countries such as the United States, Australia and Canada are being considered to offset reduced Middle East shipments, though longer shipping times may delay relief. Domestic refinery output of LPG has also increased, but it may not fully compensate for import shortfalls.
India’s LNG demand is projected to rise sharply, potentially reaching 64 bcm by 2030. While new domestic projects may boost output in the near term, they are unlikely to eliminate reliance on imports.
With geopolitical risks affecting key supply routes, energy experts say diversification and infrastructure expansion will be critical to maintaining supply stability.
(The above story first appeared on LatestLY on Mar 27, 2026 05:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).