{"id":"f-80ae245e0c-42126587-ba73-5ead-9a11-ede2d973a87c","title":"US, Australia, Africa, Russia For LNG: Is India Mulling Long-Term Strategy To Cut Gulf Dependence?","description":"Sources said India has decided to expand its national energy strategy due to recent production halts at Ras Laffan in Qatar and escalating instability near the Strait of Hormuz","timestamp":1773675599,"category":"national_v_two","headline":"US, Australia, Africa, Russia For LNG: Is India Mulling Long-Term Strategy To Cut Gulf Dependence?","modifiedHeadline":"India Shifts LNG Sourcing Amid Gulf Conflict","subCategories":["scid_b6669955"],"subcategoriesName":["National"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"386","iabCategoryName":"Political Issues & Policy","fcSummary":"india is accelerating a strategic shift to reduce reliance on gulf region's lng supply, prompted by disruptions in qatar and instability near strait of hormuz. the nation is diversifying sources to the us, australia, africa, russia, and canada, prioritizing supply security over cost despite higher prices. efforts include safer shipping routes, naval protection, and deepened engagements with global energy traders.","summary":"India diversifies LNG sources (US, Aus, Africa) amid Gulf instability & Qatar disruptions, prioritizing supply security.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/news18/f-80ae245e0c-42126587-ba73-5ead-9a11-ede2d973a87c","sourceUrl":"https://www.news18.com/india/india-lng-gulf-dependence-united-states-australia-africa-russia-long-term-strategy-ws-l-9967899.html","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/clzogrbaHho0.webp","content":"

The ongoing conflict in West Asia has pushed India toward a long-term strategy to cut its dependence on the Gulf region when it comes to procuring LNG.

According to top government sources, India has decided

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to fast-track a strategic energy pivot due to supply disruptions in Qatar – India’s largest supplier of LNG (liquefied natural gas), contributing 40 to 47 percent of total annual imports – and with the Strait of Hormuz practically a warzone.

The government sources told News18 that the Centre has launched an aggressive overhaul of its national energy strategy, moving to decouple its power and industrial sectors from a heavy reliance on transit points in West Asia.

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The sources said this has been prompted by recent production halts at Ras Laffan in Qatar and escalating instability near the Strait of Hormuz. Hence, a diversification programme is being fast-tracked to ensure long-term national security.

They said for decades, the Gulf region has been the cornerstone of India’s energy matrix with Qatar alone supplying half of the LNG. But, recent disruptions have exposed this dependency as a “major strategic risk”.

\n Qatar suspended LNG production on March 2, causing a massive leap in prices, after Iranian strikes hit Gulf energy facilities in a new escalation of the Iran war.\n

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‘MORE BALANCED LNG PORTFOLIO’

Government sources said in response, the crisis is now “pushing India to speed up plans for a more balanced LNG portfolio”.

Key to this, the sources said, is the rapid expansion of supply chains reaching toward the United States, Australia, and Africa.

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To bypass the volatile Strait of Hormuz, they said, India is increasingly looking at the US using shipping routes such as the Panama Canal. Australia is being prioritised as a “safer and shorter” shipping alternative.

Other countries being integrated into this new energy map include Russia, Norway, Canada, Peru, and West African producers like Angola and Nigeria, the sources said.

‘PRIORITISING SUPPLY OVER COST IN THE SHORT TERM’

Government sources said this shift, however, comes at a significant financial premium. To mitigate immediate shortfalls, Indian importers including GAIL, Petronet LNG, and Indian Oil have been forced into the expensive spot market.

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The prices have surged to approximately USD 24 to 25 per MMBtu but, despite these costs, authorities are “prioritising supply security over cost in the short term” to maintain essential services, they said.

Government sources further said domestic gas and imported LNG are being strictly redirected toward critical sectors, including household piped natural gas (PNG), CNG transport, and fertiliser production. This prioritisation ensures that even during a global supply crunch, the country’s food security and transport infrastructure remain functional.

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SAFER SHIPPING ROUTES, NAVAL PROTECTION

Government sources said beyond sourcing, the Centre is addressing the physical security of its energy lanes.

“We are engaging with global suppliers and examining options such as safer shipping routes and possible naval protection for LNG vessels in sensitive regions,” a source said.

They also said this includes deepening engagements with major traders such as TotalEnergies, Vitol, and Trafigura, as well as state entities like Algeria’s Sonatrach and the UAE’s ADNOC.

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US, Australia, Africa, Russia For LNG: Is India Mulling Long-Term Strategy To Cut Gulf Dependence?

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