India's LNG imports rise 40% to 6-year high amid disruptions

Business Sep 01, 2026

India's LNG imports hit a six-year high, climbing 40% year-on-year to 2.6 million tons, the biggest monthly haul since October 2020.

This is surprising, since India usually buys less when prices go up, but global supply issues from the Russia-Ukraine conflict and trouble at the Strait of Hormuz kept prices higher.

Fertilizer subsidies amid spot LNG buys

Government subsidies backed fertilizer producers, while city gas distributors were pushed to spot LNG after the government limited domestic natural gas supplies.

Some industries had to find replacements for propane as well.

Gujarat State Petroleum Corp even paid $24 per million British thermal units for a shipment, one of the highest prices seen lately.

US top LNG supplier in August

With demand rising fast, the US has now overtaken Qatar as India's top LNG supplier, providing more than one-third of imports in August.

This shift shows how global energy markets are changing and how India is leaning more on US gas as options shrink.