Oman overtook the United States to become India’s largest supplier of liquefied natural gas (LNG) in September. Indian energy importers shifted procurement toward Gulf terminals located safely outside the conflict-hit Strait of Hormuz. The Sultanate of Oman supplied 585,000 tonnes of super-chilled gas during the month.
According to global trade tracking data compiled by The Indian Express, Oman accounted for 27 percent of India’s total LNG intake. The volume represented an 11.6 percent jump compared to August imports. Oman’s liquefaction complex at Qalhat opens directly onto the Arabian Sea. Therefore, transport tankers sail straight toward Indian terminals without crossing high-risk naval minefields in the Persian Gulf.
Shipments From US and Qatar Tumble in September
The trade reshuffle coincided with sharp cargo contractions from other traditional energy partners. American LNG shipments to India plunged 59 percent month-on-month, dropping the US share to 16 percent. Longer voyage schedules around the Cape of Good Hope raised American freight costs significantly.
Meanwhile, deliveries from Qatar suffered an even steeper decline. As detailed by Business Today, Qatar’s market share collapsed to just 4.3 percent. Ongoing security crises and declared force majeure notices halted regular tanker transits through the narrow Hormuz bottleneck. Consequently, Nigeria stepped up shipments to emerge as India’s second-largest supplier during the late monsoon period.
Strategic Supply Rewiring Shields Indian City Gas Grids
Despite regional maritime turmoil, India’s total LNG import volume remained surprisingly resilient. The country imported 2.17 million tonnes of LNG in September. State-run gas distributors like GAIL and Petronet LNG quickly diversified spot contracts across alternative maritime hubs.
Indian refiners utilized long-term bilateral contracts with Muscat to ensure uninterrupted natural gas flows. Furthermore, reporting by Hellenic Shipping News confirmed that domestic power utilities averted severe fuel shortfalls. Stable maritime deliveries protected urban household cooking gas supplies and rural fertilizer manufacturing plants. As a result, India mitigated the worst impacts of the Middle Eastern energy shock.
Supply Caps and Winter Demand Require Multi-Source Hedging
Energy analysts warned that Oman cannot replace Qatar’s massive volumes permanently. Muscat operates limited liquefaction trains and must fulfill prior supply contracts with East Asian buyers.
Therefore, Indian gas companies continue to scout flexible spot contracts across West Africa and Southeast Asia. On the other hand, global shipping insurance premiums remain elevated across the northern Indian Ocean. Moreover, domestic energy demand will rise sharply as winter power consumption climbs. To safeguard national energy security, Indian public utilities plan to expand storage capacities at Dahej and Kochi ports over coming months.
Curated news reports, in-depth analysis, and special features by India’s Opinion editorial team.
