India Expands LNG Supply Sources to Africa and Barred Russian Projects

India is actively diversifying its LNG supply sources, exploring options from Africa and previously barred Russian projects, as per news reports.  

This shift comes after disruptions in supply from Qatar, India's largest LNG supplier, and ongoing geopolitical tensions. 

India's LNG Supply Diversification Strategy 

India's LNG importers are seeking new sources due to supply disruptions from Qatar, which declared force majeure in March.  

With only a fraction of Qatar's LNG export capacity operational for the next 3 to 5 years, India is turning to alternative suppliers.  

Recent data indicates that India may receive LNG cargoes from a Russian project for the first time in 2 years and from Norway after 7 years. 

Spot supplies from Africa have partially replaced those from West Asia, albeit at double the cost and with longer voyages.  

In March, African nations loaded a record 12,00,000 tonnes of LNG for delivery to India. Of these, 12 cargoes are expected to land in April, with additional shipments anticipated in May. 

Russia and Norway: New LNG Sources 

Norwegian LNG carrier Arctic Lady departed from Equinor’s Snohvit terminal in early April and is scheduled to reach Gujarat's Dahej terminal on May 12.  

This marks the first Norwegian LNG delivery to India since December 2019. Meanwhile, Russia's Portovaya project, blacklisted by the US in 2025, may discharge an LNG cargo at Petronet Dahej terminal later this month. 

Despite the blacklisting, the tanker Kunpeng, operated by a Hong Kong-based company, is not sanctioned and might discharge in India. However, Indian ports typically refuse cargoes from sanctioned projects unless explicit permissions are granted by Washington or New Delhi. 

Read More: LPG Shortages Amid Iran War Cost Indian Restaurants ₹79,000 Crore as Growth Slows! 

Impact of Sanctions on LNG Imports 

India has historically avoided sanctioned LNG, but the potential receipt of Kunpeng could indicate a shift in this stance.  

While China has continued to purchase blacklisted oil and gas, India has remained cautious.  

The receipt of Kunpeng would signal a willingness to accept LNG from sanctioned projects, though no official permissions have been reported. 

Conclusion 

India's diversification of LNG supply sources to Africa and previously barred Russian projects highlights its strategy to mitigate supply disruptions from Qatar. This approach reflects India's broader energy import diversification efforts, including crude oil from Russia and Venezuela. 

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