India diversifies LNG import basket after Hormuz closure cuts Qatar, UAE supplies

📌 Summary:

• West Asia war and the Strait of Hormuz closure disrupted India's LNG flows from key suppliers Qatar and the UAE.

• India responded by sourcing alternate LNG cargoes from Oman, Nigeria, the United States and Russia — recast of natural-gas import basket.

• Supply impact has been less severe than initially feared due to alternative suppliers raising exports and demand curtailment globally.

• Global LNG exports in April 2026 were 32.4 million tonnes (Mt) — down only 3.8% from 33.7 Mt a year ago, despite ~16% of global liquefaction capacity being offline due to the Hormuz disruption (per Cedigaz).

• Loss of 6 Mt from Qatar+UAE combined (described as 'unprecedented' on monthly basis) was partially offset by: US (+2 Mt), Canada (+1 Mt), Malaysia/Nigeria/Russia (+2.4 Mt).

• India's LNG imports rebounded after a March 2026 dip as importers turned to non-Hormuz-dependent suppliers.

• Strategic implication: India's heavy reliance on Strait of Hormuz (a chokepoint through which ~17–20% of global LNG flows) is being reduced; long-term contracts with US (Henry Hub-linked) and Mozambique/Tanzania (East Africa) becoming attractive.

• Highlights need for: (a) diversified supply contracts; (b) strategic gas reserves; (c) accelerated city gas distribution & domestic gas production; (d) renewable-hydrogen substitution.

🎯 UPSC Relevance: GS3 — Energy security, natural-gas economy, India's import diversification strategy; GS2 — Geopolitics of Strait of Hormuz, India-West Asia relations.

📝 Prelims Facts:

• Strait of Hormuz — between Iran and Oman; ~17–20% of global oil and ~25% of global LNG passes through it

• Qatar (RasGas, QatarEnergy) was India's largest LNG supplier; UAE (ADNOC) major supplier

• New alternate suppliers: USA, Russia, Oman, Nigeria, Canada, Malaysia

• Global LNG export April 2026: 32.4 Mt

• Data source: Cedigaz (France-based natural gas data provider)

🔑 Key Term: LNG (Liquefied Natural Gas) — Natural gas cooled to about –162°C to liquefy it (volume shrinks ~600x), allowing maritime transport via cryogenic tankers; regasified at LNG terminals (e.g., Dahej, Hazira, Kochi, Dabhol, Mundra, Ennore in India).