- By Nidhi Giri
- Tue, 24 Mar 2026 04:21 PM (IST)
- Source:JND
India LNG Shortage: India is grappling with a shortage of both liquefied petroleum gas (LPG) and liquefied natural gas (LNG) amid the Middle East conflict. Around 50 per cent of India’s LNG comes from West Asia, but ongoing conflicts in the region are disrupting supplies. The closure of the Strait of Hormuz by Iran has stalled shipments of oil and gas, while operations at Qatar’s largest LNG facility, Ras Laffan, have been disrupted following an attack by Iran, affecting a key source of India’s LNG imports.
How Did The War Disrupt World's LNG Supply?
20 per cent of the world's LNG supply comes through the Strait of Hormuz. However, the conflict that began on February 28, 2026, disrupted supplies. Attacks on Qatar's Ras Laffan refinery and Qatar Energy's LNG project significantly reduced production and capacity.
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How Dependent Is India On Other Countries For LNG Supply?
India imported approximately 27 million tonnes of LNG in FY2025. India spent 1USD 4.9 billion for this. India imports 40 to 45 per cent of its LNG needs from Qatar and other West Asian countries. India produces approximately half of its natural gas needs. However, most of the production is used for city gas distribution. Therefore, LNG is imported to meet the needs of fertilizer, steel, and power sectors.
The ongoing conflict in the Middle East has disrupted LNG supplies to India and other countries that rely on energy imports. The closure of the Strait of Hormuz and the attack on Qatar Energy's refinery have clearly impacted supplies to consumers.
The Indian government has cut supplies to industrial and fertilizer plants to meet domestic needs. Fertilizer plants are receiving only 70 per cent of their LNG needs, while other industrial sectors, such as tea and other industries, receive 80 per cent of their LNG needs.
India Diversifies Imports To Meet LNG Needs
India has prioritised supplying domestic needs. It has also diversified its LNG imports. India has increased imports from major LNG trading firms in Australia, the United States, and Algeria to meet domestic needs.
India is also focusing on increasing its domestic LNG production. A parliamentary report stated that India has reserves of 1.4 trillion cubic metric tons of natural gas, and it also has crude oil reserves of 4.5 billion barrels.
Difference Between LPG And LNG?
Liquefied petroleum gas (LPG) and liquefied natural gas (LNG) both exist as gases at normal temperature and pressure, and although their names and abbreviations are similar, they are different in themselves.
LPG is a highly flammable gas. It is made from a mixture of hydrocarbon gases, also known as propane or butane. LPG is produced as a byproduct when factories process crude oil into petrol and diesel.
When natural gas is extracted from the ground, it contains methane as well as some heavier gases. These are separated from the gas. The separated gases are propane and butane. This is the same gas that is filled in cooking gas cylinders in our homes.
Meanwhile, when it comes to LNG, natural gas is extracted from underground or underwater, then refined. During this purification, water, carbon dioxide, and other heavy gases (like propane and butane in LPG) are removed.
The gas that remains after cleaning is almost pure methane. To transport this methane gas from one place to another in ships, it is cooled to very cold temperatures (about -162 degrees Celsius), due to which it shrinks and becomes liquid. This liquid form is called LNG. When it is put in vehicles, it is called CNG. That is, it is compressed and filled in cylinders and when it is supplied to homes through pipes, it is called PNG.