India has more than doubled the number of countries supplying liquefied natural gas (LNG) to the country, expanding its import network from six to 15 nations as the government seeks to strengthen energy security and reduce exposure to supply disruptions.
The development was disclosed by the government in a written response to the Rajya Sabha on Monday. The broader sourcing network is aimed at reducing India’s dependence on any single supplier, geographic region or maritime transit route amid heightened geopolitical tensions, shipping risks and volatility in global energy markets.
The diversification of LNG procurement is particularly significant as India seeks to increase the share of natural gas in its energy mix and reduce dependence on more polluting fuels. A wider supplier base gives Indian buyers greater flexibility to redirect purchases when geopolitical events, shipping disruptions or regional shortages affect individual supply routes.
The Ministry of Petroleum and Natural Gas said it continuously monitors geopolitical developments, maritime risks and international supply conditions. It also coordinates with state-owned oil and gas companies and other stakeholders to help maintain the availability of crude oil, LNG and petroleum products.
India Expands Strategic Fuel Storage
Alongside import diversification, India is also strengthening its strategic petroleum storage infrastructure.
Indian Strategic Petroleum Reserve Limited (ISPRL) currently operates three strategic crude oil storage facilities in Andhra Pradesh and Karnataka, with a combined capacity of 5.33 million metric tonnes (MMT).
The government has approved two additional commercial-cum-strategic petroleum reserve projects at Chandikhol in Odisha and Padur in Karnataka. Together, the projects are expected to add 6.5 MMT of storage capacity once completed. However, an updated commissioning schedule for the facilities has not been provided.
Separately, ONGC is developing a 1.75 MMT strategic petroleum reserve in Karnataka. Half of the capacity will be maintained for strategic purposes, while the remaining capacity will be used for ONGC’s commercial operations.
Potential Impact on Chemical Commodity Prices
The expansion of India’s LNG sourcing network is expected to improve supply security and reduce exposure to disruptions affecting individual suppliers or transit routes.
In the near term, diversified procurement could help moderate LNG price volatility by giving Indian buyers access to alternative sources. However, international gas prices could still rise sharply during major geopolitical disruptions, shipping bottlenecks or periods of tight global supply.
More reliable LNG availability could benefit gas-intensive industries such as ammonia, methanol, hydrogen and other petrochemical manufacturing by improving access to feedstock.
As a result, prices of gas-linked chemical commodities could face stabilising or downward pressure if feedstock availability improves. However, stronger global LNG demand and higher freight costs could limit these benefits, particularly during periods of tight supply.
Overall, India’s strategy of diversifying LNG imports while expanding strategic fuel storage is designed to strengthen the country’s energy resilience, reduce vulnerability to geopolitical shocks and provide greater protection against sudden disruptions in international energy markets.
