United States Becomes India's Largest LPG and LNG Supplier

The United States has become the largest supplier of both liquefied petroleum gas (LPG) and liquefied natural gas (LNG) to India as of August 2026. Hardeep Singh Puri, India's Petroleum and Natural Gas Minister, announced that the U.S. now accounts for approximately 67% of India's LPG imports. Between May and July 2026, the U.S. also became the primary LNG supplier, delivering 2.19 MT as imports from Qatar plummeted by 91%.

This strategic shift follows disruptions in the Strait of Hormuz caused by the U.S.-Iran conflict. While Puri characterized the diversification as an independent strategy, other reports suggest the shift was driven by the need for emergency spot purchases from the U.S. Gulf Coast. To maintain energy security, the government expanded crude oil sourcing from 27 to 41 countries and maintained a 60-day crude oil cover, ensuring no fuel retail stations went dry.

To further reduce import reliance, India launched the Rs 84,000 crore Samudra Manthan initiative to accelerate private-sector deep-sea hydrocarbon exploration. Additionally, natural gas consumption recovered to 197 million metric standard cubic metres per day in June 2026, though a report by Equirus noted that import dependence has risen to 56%. To support continued imports, the Indian Oil Corporation plans to acquire a 50% stake in very large gas carriers.