US Becomes India’s Top LNG Supplier
According to CNBC, the US has taken the lead as India’s largest supplier of liquefied natural gas (LNG) as of May. This aligns with predictions made by President Trump last year that the US would soon become a significant supplier to India.
During a meeting with Indian Prime Minister Narendra Modi in February 2025, Trump highlighted the energy sector—especially LNG and oil—as a key area for potential growth in exports to India. Both leaders showed a strong interest in bolstering these sales, but the transition to US dominance in LNG has really sped up this year, particularly following increased tensions between the US and Iran. The resulting situation has led Iran’s regime to attempt to disrupt maritime traffic in the Strait of Hormuz.
CNBC, referencing the data firm Kpler, reported that India imported 900,000 tonnes of LNG in May—dramatically increasing imports from the US and representing about 40% of the total LNG India brought in last month. Just a month prior, the volume was notably lower, only a third of that amount.
Previously, Qatar was India’s primary LNG supplier, providing around 60% of its imports, primarily through the Strait of Hormuz. As of 2025, Qatar accounted for a significant portion of India’s LNG supply. Traditionally, India has leaned on Gulf suppliers due to the shorter shipping distances, which generally reduce transportation costs. Still, reports suggest that US LNG might be more economical based on pricing standards, especially with ongoing threats from Iran of attacks in the Strait.
As noted by CNBC, “Before the conflict escalated, high freight costs hindered the US’s ability to capture a meaningful share of India’s gas market. Yet, being cut off from Gulf supplies has made India more receptive to US shipments.”
Qatar, neighboring the Persian Gulf and a leading LNG exporter, faces challenges due to disruptions in the Strait. Qatar Energy, the national company, had to cancel several contracts earlier this year, citing force majeure, which indicates an inability to meet contractual obligations due to uncontrollable circumstances.
In a military response to Iran, Trump announced Operation Epic Fury on February 28, aiming to weaken the Iranian regime’s influence in the region. In retaliation, Iranian forces launched attacks on multiple neighboring countries and targeted commercial vessels in the Strait of Hormuz. Qatar Energy specifically mentioned “successive Iranian attacks” as the reason for their contractual non-fulfillment.
If the situation in the Strait of Hormuz continues to deteriorate, India’s economic sector—particularly vulnerable to LNG shortages—could face significant consequences. The National Restaurant Association of India (NRAI) warned that shortages could be devastating, leading to massive financial losses for restaurants that heavily depend on commercial LPG for operations.
At that time, the Indian government was reportedly working to increase American goods supplies, assuring citizens that there was “no need to panic” about the situation.
Nonetheless, discussions about expanding trade began well before Operation Epic Fury. During Trump’s February 2025 meeting with Modi, he promoted American LNG, expressing hope for the US to soon become a “major supplier” of oil and gas to India.
After the summit, Indian Foreign Minister Vikram Misri reflected on past energy purchases, indicating a possibility for growth from $15 billion last year to up to $25 billion soon. Conversations between both leaders indeed focused on enhancing energy imports.
As for the Strait of Hormuz, the situation appeared ambiguous, with conflicting statements from Iranian and US military sources regarding ship passage. Iran’s Qatam al-Anbia Central Headquarters claimed the strait was “closed to all shipping” after US airstrikes, while CENTCOM insisted it remained navigable.
Reports indicated that at least three LNG tankers passed through the strait recently, two of which were heading towards Southeast Asia, though their final destination in relation to India remains unconfirmed.
