India Imports LNG From US, Oman, and Nigeria in March as Qatar, UAE Supplies Dry Up

Why It Matters

The episode underscores India’s vulnerability to geopolitical shocks in its gas supply chain and signals tighter, pricier LNG markets across Asia, affecting energy costs and power‑sector planning.

Key Takeaways

• India’s March LNG imports dropped 20% to 1.2 mt.
• Qatar and UAE supplies fell to zero by month‑end.
• US, Oman, Nigeria shipments rose to cover part of gap.
• Asian spot LNG prices have doubled since conflict began.
• Coal, wind, and storage fill power‑generation shortfall.

Pulse Analysis

India’s gas import profile has long leaned on Qatar and the United Arab Emirates, which together supplied roughly 60% of its LNG. In March 2026, attacks on Gulf infrastructure forced those shipments to zero, pulling India’s total imports down to 1.2 million tonnes – a 20% YoY decline. The loss translates to nearly 47 MSCMD of gas, a sizable chunk of the nation’s 189 MSCMD daily consumption. To plug the gap, Indian importers turned to alternative sources, boosting cargoes from the United States, Oman and Nigeria, though these volumes could not fully replace the missing Middle‑East flow.

The immediate impact on India’s power sector was muted because gas accounts for less than 1.5% of its electricity mix, a share that has been shrinking. Instead, utilities leaned on coal and accelerated commissioning of wind farms and battery‑storage installations to meet peak‑summer demand. However, the surge in Asian spot LNG prices – which have doubled since the conflict erupted – raises the cost of any future gas‑reliant projects and adds pressure on import‑dependent industries. The price spike also ripples through downstream users, from fertilizer producers to heavy‑industry players, tightening profit margins.

Regionally, the disruption reverberates across Asia, where total LNG imports fell to 20.4 million tonnes in March, down from a 2025 average of 22.1 million tonnes. With roughly 20% of global LNG supply from Qatar and the UAE now offline, market analysts project elevated spot prices through 2027 and a prolonged recovery for Qatar’s export capacity. For India, the episode highlights the strategic imperative to diversify supply, bolster domestic gas production, and accelerate renewable‑energy integration to reduce exposure to geopolitical volatility.