The United States has emerged as India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), overtaking traditional Gulf exporters as disruptions in West Asia reshape global energy trade.
The change comes after conflict involving Iran affected shipping routes through the Strait of Hormuz, a key passage for energy supplies from the Gulf. India depends heavily on the route for its LNG and LPG imports, prompting buyers to seek alternative sources as supply uncertainty increased.
According to industry data, US shipments of LNG and LPG to India rose sharply in May. American LNG exports accounted for more than 40 per cent of India’s monthly LNG requirements, while LPG supplies from the US exceeded the combined volumes received from major Gulf suppliers.
Energy analysts say the shift reflects both immediate supply concerns and a broader effort by India to diversify its energy sources. For years, Gulf nations such as Saudi Arabia, Qatar, the UAE and Kuwait dominated India’s gas imports. However, recent geopolitical tensions have highlighted the risks of relying heavily on a single region.
The growing energy partnership between India and the US had already been gaining momentum before the latest disruptions. Indian state-owned refiners signed long-term LPG supply agreements with US producers, helping strengthen trade ties between the two countries.
Experts note that importing gas from the US is generally more expensive than sourcing it from the Gulf because of longer shipping distances. Despite the higher costs, securing reliable supplies has become a priority amid ongoing uncertainty in West Asia.
The development is expected to deepen energy cooperation between New Delhi and Washington while improving India’s energy security. However, analysts believe Gulf countries will remain important suppliers once regional shipping conditions stabilize.
Also Read: Xbox CEO Asha Sharma plans major layoffs