Key facts
- Oman was India's largest LNG supplier in September, providing 0.59 million tons.
- U.S. LNG supply to India fell 60.7% to 0.34 million tons in September.
- European buyers increased demand for U.S. LNG cargoes.
- India's LNG imports from Oman rose 11.6% in September from August.
- India's tender award prices for LNG increased to as much as $26.4/MMBtu by September.
Oman surpassed the United States as India's largest supplier of liquefied natural gas (LNG) in September, according to tanker-tracking data by Kpler cited by The Indian Express. This shift occurred as European buyers increased their demand for U.S. LNG cargoes, intensifying competition for spot U.S. supply.
European buyers have been acquiring additional American LNG amid historically low gas storage levels in the EU ahead of winter, making the arbitrage economics favorable for Europe. Consequently, India increased its LNG imports from alternative sources, with Oman stepping in as the primary supplier.
India's imports from Oman rose by 11.6% to 0.59 million tons in September compared to August. In contrast, imports from the United States plummeted by 60.7% from the previous month, reaching 0.34 million tons. Nigeria secured the second position as an LNG supplier to India, despite a 35% month-over-month decline in imports, providing 0.35 million tons. The United Arab Emirates (UAE) was the fourth-largest supplier, with shipments up 27.3% from August to 0.31 million tons in September.
Analysts at Wood Mackenzie noted that India has managed the impact of the Iran war relatively well compared to Pakistan and Bangladesh, employing a tiered demand-management strategy. This strategy kept city gas distribution unaffected while reducing supply to the fertilizer, refinery, and industrial sectors in March and April. Despite a significant increase in India's tender award prices for LNG, from $16.8–18.8 per million British thermal units (MMBtu) between March and June 2026 to as much as $26.4/MMBtu by September, demand remained robust.