India’s LNG Import Mix Shifts: US Becomes Top Supplier as Qatar Volumes Plunge 91% – Indian PSU

India’s liquefied natural gas (LNG) import landscape has undergone a significant transformation, with the United States emerging as the country’s largest LNG supplier during the May–July 2026 period. The shift comes as LNG imports from Qatar, traditionally India’s dominant supplier, declined sharply by 91% year-on-year, according to the latest Natural Gas Compass | Monthly Edition: Consumption Returns to Pre-War Normal report released by Equirus Securities.

The report highlights India’s increasing diversification of LNG sourcing, reducing its immediate dependence on Qatari supplies while strengthening imports from the United States, Africa and other Middle Eastern exporters.

US Tops India’s LNG Suppliers List

India imported approximately 7.08 million tonnes (MT) of LNG during May–July 2026, marking a 15% increase over the corresponding period last year.

The United States supplied 2.19 MT, registering an impressive 253% year-on-year growth, making it India’s largest LNG supplier during the three-month period.

Nigeria followed with 1.31 MT, while Oman supplied 1.22 MT and Angola contributed 0.80 MT. Qatar’s exports to India fell dramatically to just 0.23 MT, representing a 91% decline compared to the previous year.

The changing import pattern reflects India’s efforts to diversify procurement amid evolving global energy market dynamics.

Natural Gas Consumption Returns to Normal

India’s total natural gas consumption rose to 197 million metric standard cubic metres per day (mmscmd) in June 2026, increasing 7% month-on-month and 2% year-on-year.

Gas demand excluding the power sector climbed to 176 mmscmd, approaching pre-disruption levels.

LNG consumption reached 110 mmscmd, up 13% from May and 10% higher than June 2025, while domestic gas consumption remained stable at 87 mmscmd. Consequently, India’s dependence on imported gas stood at 56%.

Broad-Based Demand Recovery Across Sectors

The Equirus report noted that demand recovery was witnessed across nearly all major consuming sectors.

City Gas Distribution (CGD) remained the largest consumer with 58 mmscmd, followed closely by the fertiliser sector at 55 mmscmd. Miscellaneous industries consumed 41 mmscmd, while power sector demand improved to 21 mmscmd.

Refineries consumed 15 mmscmd, and petrochemical demand recovered to 7 mmscmd, although it remained 48% lower year-on-year.

LNG Arrivals Stay Strong Despite Higher Spot Prices

India continued to receive healthy LNG cargo volumes despite elevated international prices.

LNG berth arrivals stood at 2.4 MT in May and 2.3 MT in June, taking total arrivals during the first quarter of FY27 to 6.2 MT.

Provisional data for July indicates arrivals of approximately 2.1 MT, reflecting sustained import activity even as Asian spot LNG prices climbed above USD 20 per MMBtu.

Global LNG Market Tightens

According to Equirus, global LNG trade remains broadly flat, but stronger Chinese demand is increasing competition for flexible LNG cargoes.

China’s LNG imports have moved above seasonal averages after a weak start to the year, while Europe’s gas storage stood at 58%, below historical averages ahead of the winter heating season.

The brokerage expects India’s gas demand to remain robust during July, with consumption likely to stay close to June levels before moderating in August due to seasonal softness and lower demand from Morbi’s industrial cluster.

Key Highlights

India’s LNG Imports (May–July 2026)

India Gas Demand (June 2026)

Sector-wise Gas Demand (June 2026)