India’s imports of liquefied natural gas (LNG) declined by 20 per cent year-over-year to 1.2 million tonnes (mt) in March 2026 as cargoes from its major suppliers Qatar and the UAE dried up after mounting attacks on oil and gas infrastructure in the region.
“India imported 1.6 Mt of LNG in March, down by 20% year-on-year. The country’s LNG sector is among the most exposed in Asia to the Iran conflict, due to its reliance on Qatar and the UAE for nearly 60% of its supply,” Sam Reynolds, a Research Lead with the Institute for Energy Economics and Financial Analysis (IEEFA), said in a commentary on Wednesday.
While imports from both countries fell to zero by the end of March, India’s shipments from the US, Oman, and Nigeria increased during the month to make up some of the shortfall, he added.
Strait of Hormuz closure hits supplies
Closure of the Strait of Hormuz (SoH) adversely impacted the world’s fourth-largest LNG importer as supplies from Qatar—its largest LNG supplier—completely stopped after attacks on QatarEnergy’s Ras Laffan facility.
India’s total natural gas consumption is about 189 million standard cubic meters per day (MSCMD), of which 97.5 MSCMD are produced domestically. About 47.4 MSCMD has been affected due to force majeure conditions.
Limited impact on power sector
Reynolds pointed out that neither China nor India relies on gas or LNG for a significant share of their power generation. In China, the share of gas in the electricity mix has remained at 3 per cent over the last decade, while in India it has declined to below 1.5 per cent.
India has instead turned to coal to mitigate power supply risks, while accelerating the commissioning of new wind and battery storage projects. While meeting peak electricity demand in the upcoming summer will remain a challenge amid the Iran conflict, the power sector in both countries has remained relatively insulated from LNG price shocks, he added.
Like China, India’s LNG imports have fluctuated in recent years due to high prices. The country’s annual purchases fell by 6.4 per cent in 2025. India’s LNG imports in 2025 were lower than in 2020, IEEFA commentary noted.
Asian markets impacted
Reynolds emphasised that Asia’s LNG imports plummeted in March 2026, as the Middle East crisis has effectively shut in 20 per cent of global supply from Qatar and the United Arab Emirates (UAE).
Asia purchased 20.4 million tonnes (mt) of LNG in March 2026, according to Kpler data, down from a monthly average of 22.1 mt throughout 2025.
Ceasefire uncertainty keeps markets volatile
Despite a fragile two-week ceasefire between the US and Iran announced on April 7th, negotiations for a longer-term truce failed on April 12th, sending oil and gas prices soaring once again. The SoH remains closed, and it is unclear whether the passage will ever return to normal as a free waterway, he added.
“Even once the conflict is fully resolved, oil and gas facilities in the Persian Gulf will take several months to resume normal operations, and 17 per cent of Qatar’s LNG export capacity will be offline for up to five years. Spot market LNG prices in Asia have doubled since hostilities began and are widely projected to remain elevated through 2027,” IEEFA noted.
Imports fall sharply towards month-end
Monthly figures mask lower imports toward the end of March. In the week ending 29 March, Asia recorded its lowest weekly import volumes since October 2023. Imports from Qatar were below 2 mt in March—reflecting cargoes in transit before the conflict began—but fell to zero in the final week of the month, Reynolds said.
On a 30-day rolling average basis, shipments to Asia in mid-April reportedly fell to their lowest level since June 2020, he added.