Qatar LPG-LNG Imports Fall as US Becomes India’s Biggest Supplier
India’s energy import map is undergoing a major shift as LPG and LNG supplies from Qatar and other Gulf countries have fallen sharply, while the United States has emerged as a key — and in some periods the largest — supplier to India.
The change has accelerated because of the prolonged disruption to energy shipments through the Strait of Hormuz following the US-Iran conflict. India, which historically depended heavily on Gulf countries for LPG and relied on Qatar for a large share of its LNG, has been forced to diversify its supply sources.
Recent Kpler data show just how dramatic the change has been. In July 2026, the US supplied around 0.91 million tonnes of LPG to India, accounting for more than 73% of monthly imports. Qatar and other Gulf suppliers remained far behind.
The LNG market has seen a similar shift. During May-July, the US supplied about 2.19 million tonnes of LNG, making it India's largest supplier over that period, while Qatar's LNG shipments fell 91% year-on-year to just 0.23 million tonnes.
For India, this is more than a temporary change in suppliers. It could accelerate a long-term effort to diversify the country's energy-security strategy.
Why Are Qatar’s LPG and LNG Supplies Falling?
The main reason is the disruption caused by the conflict in West Asia.
The Strait of Hormuz is one of the world's most important energy shipping routes. A large proportion of Gulf oil and gas exports normally passes through the waterway.
Qatar is particularly exposed because its LNG export infrastructure is closely linked to the Gulf shipping route. QatarEnergy declared force majeure on some LNG supplies after attacks affected its Ras Laffan facilities, while shipping disruptions further complicated exports. Petronet LNG, India's largest LNG importer, has been waiting for clarity on future Qatar cargoes and has said that 56 contracted cargoes have been affected.
Before the crisis, Qatar was India's largest LNG supplier and accounted for a substantial portion of India's imported gas. Petronet LNG alone has a long-term agreement with QatarEnergy for 7.5 million tonnes of LNG a year.
The disruption therefore created a major supply gap for Indian buyers.
US Emerges as India’s Biggest LPG Supplier
The most visible change has occurred in the LPG market.
India imports roughly 60-65% of its LPG requirement, making international supply chains particularly important for the domestic cooking-gas market. Before the crisis, Gulf countries supplied the overwhelming majority of India's imported LPG.
But the situation changed rapidly.
According to Kpler data, US LPG shipments to India climbed from about 0.26 million tonnes in February to 0.44 million tonnes in March, 0.63 million tonnes in May, 0.72 million tonnes in June and around 0.91 million tonnes in July.
In July, the US therefore overtook traditional Gulf suppliers to become India's largest LPG supplier.
The trend continued into August. India imported approximately 0.62 million tonnes of LPG from the US, representing more than 73% of the country's LPG imports during the period covered by the latest Kpler data. UAE supplies were around 0.14 million tonnes, while Qatar supplied roughly 60,000 tonnes.
India did not receive LPG from Saudi Arabia in either July or August, according to the same data.
LNG Is Following a Similar Pattern
The shift in LNG has been equally significant, although the supplier basket is more diversified.
During May-July 2026, India imported approximately 7.08 million tonnes of LNG, up 15% from a year earlier.
The US supplied 2.19 million tonnes, up 253% year-on-year. Nigeria supplied 1.31 million tonnes, Oman 1.22 million tonnes and Angola 0.80 million tonnes.
Qatar's contribution dropped to just 0.23 million tonnes, a 91% year-on-year decline.
The latest monthly data show the US remaining important. US LNG supplies reached about 0.75 million tonnes in August, compared with around 0.72 million tonnes in July.
This does not necessarily mean India has permanently replaced Qatar with the US.
The more accurate description is that Indian buyers are diversifying rapidly because traditional Gulf supplies have become less reliable.
Why the US Is Able to Fill the Gap
The US has a major advantage: abundant shale gas production and rapidly expanding LNG and LPG export infrastructure.
For LPG specifically, India had already signed a term agreement for approximately 2.2 million tonnes per year of US LPG for 2026, equivalent to roughly 10% of its annual LPG import requirement.
The crisis then pushed Indian state-owned oil companies to purchase additional cargoes from the US on the spot market.
The government is now looking beyond emergency purchases.
Reports in July indicated that India intends to source up to 25% of its LPG imports from the US in 2027, while more recent reporting said Indian Oil, Bharat Petroleum and Hindustan Petroleum are negotiating additional US term contracts.
That suggests some of the emergency diversification could become a longer-term supply strategy.
This Could Change India’s Energy Security Strategy
The biggest lesson from the crisis is India's vulnerability to concentrated energy supply chains.
Before the disruption, more than 90% of India's imported LPG came from the Middle East, according to CRISIL Intelligence.
That concentration made India highly exposed to any disruption around the Strait of Hormuz.
The current shift gives India a wider supplier network that includes:
United States
Qatar
UAE
Saudi Arabia
Oman
Nigeria
Angola
Algeria
Argentina and other emerging suppliers
For energy security, diversification has an obvious advantage: if one supply route is disrupted, buyers have more alternatives.
However, diversification comes at a cost.
Longer Shipping Routes Could Increase Import Costs
US LPG and LNG cargoes generally travel much farther to reach India than Gulf cargoes.
That means higher freight, insurance and shipping costs can become part of the landed price.
India has already experienced higher LNG procurement costs during the crisis. State-backed companies have reportedly paid more than $23 per MMBtu for some September LNG cargoes, among the highest prices paid by Indian buyers in years.
This matters for businesses that depend heavily on natural gas.
Higher LNG prices can increase costs for sectors such as:
Fertilisers
City gas distribution
Power generation
Chemicals
Refineries
Glass
Ceramics
Petrochemicals
The impact will vary depending on each company's ability to pass higher fuel costs to customers.
What Does This Mean for LPG Consumers?
For households, the key concern is whether the supply shift will affect LPG availability and cylinder prices.
The government has so far prioritised domestic LPG availability, particularly after shortages earlier in 2026.
The larger US supply base could actually strengthen physical availability by reducing India's dependence on Gulf cargoes.
But US sourcing is not automatically cheaper.
Longer transportation distances and tighter global LNG/LPG markets can increase procurement costs. Oil marketing companies may therefore face pressure between keeping domestic LPG prices affordable and managing higher import costs.
That makes the government's subsidy and compensation policies important for the financial performance of state-run oil marketing companies.
Which Indian Companies Could Be Affected?
The changing LPG and LNG trade flows are particularly relevant for Indian energy companies.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are major LPG importers and distributors. Their sourcing strategies will determine how quickly US supplies become part of India's regular LPG basket.
The LNG shift is especially relevant for Petronet LNG and GAIL, as both companies have significant exposure to India's natural-gas import and distribution ecosystem.
Petronet LNG's long-term Qatar contract remains strategically important even though deliveries have been disrupted. The company expects its contracted Qatar supplies to become more reliable once geopolitical conditions stabilise.
This is why investors should not assume that a temporary fall in Qatar supplies means Qatar will permanently lose its position in India's LNG market.
The Russia Factor Is Also Important
Interestingly, the shift in LPG and LNG sourcing is happening while India continues to rely heavily on Russia for crude oil.
Russia remained India's largest crude supplier in July, accounting for about 55.5% of India's crude imports, according to Kpler data cited by Business Standard.
This shows that India's energy strategy is becoming more diversified by fuel and by geography.
India can continue buying Russian crude while sourcing LPG from the US, LNG from the US, Africa and Oman, and crude from other suppliers.
For the world's third-largest oil importer, such diversification can reduce the impact of individual geopolitical shocks.
What Investors Should Watch Next
The current LPG-LNG shift could have significant implications for Indian energy companies, but investors should focus on the underlying economics rather than simply tracking import volumes.
1. Qatar's supply recovery
A restoration of Qatar's LNG exports could reduce India's need for expensive spot cargoes.
2. US term contracts
Long-term US LPG and LNG contracts could determine whether the current diversification becomes permanent.
3. Freight and insurance costs
Longer routes can reduce the financial benefit of cheaper US-origin fuel.
4. Global LNG prices
India competes with Europe and other Asian buyers for flexible LNG cargoes. Higher global prices could increase import costs.
5. Domestic LPG demand
India's LPG consumption and household demand will determine how much imported fuel the country needs.
6. Petronet LNG's Qatar volumes
The restoration of contracted Qatar cargoes will be a key indicator for India's LNG supply situation.
The Bigger Picture
The fall in Qatar's LPG and LNG supplies is not simply a story about one supplier losing market share.
It is evidence of how quickly geopolitical events can reshape global energy flows.
The US has gained a larger role in India's energy basket, while African and other non-Gulf suppliers are also increasing their presence. India is effectively using the crisis to build a broader procurement network.
That could prove valuable even after the immediate disruption ends.
At the same time, Qatar is unlikely to disappear from India's energy map. Its geographical proximity, established infrastructure and long-term LNG contracts give it a structural advantage once its production and shipping capacity normalise.
Bottom Line
Qatar's share of India's LPG and LNG imports has fallen sharply, while the US has emerged as the leading supplier in key recent periods. US LPG accounted for more than 73% of India's July imports and remained above 73% in the August data reported by Kpler. In LNG, the US supplied 2.19 million tonnes during May-July, while Qatar's volumes fell 91% year-on-year.
The immediate cause is the disruption to Gulf energy supplies following the West Asia conflict and problems around the Strait of Hormuz.
For India, the development is a mixed picture. Diversification improves energy security, but longer shipping routes and elevated global prices can raise the import bill.
For investors, the important question is what happens after the crisis: does India return to its old Gulf-heavy energy mix, or does the US become a permanent pillar of India's LPG and LNG supply chain?
The answer could have long-term implications for Indian oil marketing companies, gas distributors, LNG importers and the country's broader energy strategy.
This article is for informational and educational purposes only and should not be considered investment advice.
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