India LNG Imports Reliance on Middle East Raises Supply Risk

India’s strong reliance on a small group of liquefied natural gas (LNG) suppliers, particularly from West Asia could expose the country to supply risks if geopolitical tensions disrupt energy flows in the region.  

As per news reports, it is shown that India’s dependence on Middle Eastern exporters is significantly higher than that of most other major LNG-importing economies. 

Heavy Reliance on West Asian Suppliers 

Around 59.5% of India’s LNG imports in 2024 came from West Asian countries, reflecting a much higher regional dependence compared with other large LNG importers. 

By comparison, China sourced about 26.5% of its LNG from the Middle East, while Japan’s share stood at just 10.7%. Among other Asian economies, South Korea imported 35.3% of its LNG from the region and Thailand about 26.8%. 

European countries show even lower exposure. France sourced roughly 1.3% of its LNG from the Middle East, while the Netherlands reported almost no reliance on the region. 

Another concern is supplier concentration. India sources about 83.5% of its LNG imports from its top five exporters, significantly higher than the global average of roughly 72.4% and above the levels seen in markets such as Japan and South Korea. 

Diversification Opportunities Remain Limited 

India remains one of the world’s significant LNG buyers. Global LNG imports were valued at about $200 billion, with Asian economies accounting for most of the demand. 

China was the largest importer with purchases exceeding $44 billion, followed by Japan at around $41 billion and South Korea at nearly $29 billion. India imported LNG worth roughly $15 billion, placing it among the major global buyers. 

Despite the strong reliance on Middle Eastern suppliers, the analysis highlights significant scope for diversifying sourcing. Australia, the world’s largest LNG exporter with shipments worth about $42.7 billion in 2024, accounted for only 0.1% of India’s imports. 

India’s share in US LNG exports stands at about 7.2%, while imports from Russia account for just 0.3%. The country also did not import LNG from Malaysia, which exported about $14 billion worth of LNG in 2024. 

At the same time, India represents a significant portion of several Middle Eastern exporters’ shipments, 18.1% of Qatar’s LNG exports, 11.3% of Oman’s, and 56% of the UAE’s. 

Read More: India Curbs Gas Supply to Industries After Qatar Halts LNG Production Amid Gulf Tensions! 

Conclusion 

Although India currently maintains reserves sufficient for more than three weeks, prolonged geopolitical disruptions or shipping bottlenecks could pressure supply chains. Expanding sourcing partnerships and diversifying suppliers may therefore become increasingly important for strengthening the country’s long-term energy security. 

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