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69% of India's LNG Imports Face Hormuz Strait Risk, Report Warns

A new report highlights that nearly 69% of India's liquefied natural gas imports in 2025, or 17.5 million tonnes, came from West Asia and transited the geopolitically sensitive Strait of Hormuz. Key import terminals like Dahej, Kochi, and Mundra face high to complete dependency on this route, making them vulnerable to supply shocks. Companies such as Petronet LNG and Gujarat State Petronet are identified as particularly at risk, with force majeure notices already issued due to disruptions. In contrast, GAIL's marketing segment shows greater resilience due to diversified supply contracts from the US, Russia, and Australia.

Key Points: India's Heavy LNG Reliance on Strait of Hormuz: Sector Risks

  • 69% of India's LNG imports transit Strait of Hormuz
  • Petronet LNG's Dahej terminal has 76% exposure
  • Gujarat Gas issues force majeure to industrial clients
  • GAIL's marketing segment most resilient at 16% exposure
  • Disruption would hit terminals, transmission, and margins
2 min read

Nearly 69 pc of India's LNG imports linked to Strait of Hormuz: Report

Report reveals 69% of India's LNG imports pass through the volatile Strait of Hormuz, exposing key terminals and gas companies to major supply disruption risks.

"concentration risk remains significant - Elara Capital analysts"

New Delhi, March 6

Nearly 69 per cent of domestic liquefied natural gas imports in 2025 or 17.5 million tonnes, came from West Asian countries such as Qatar, the UAE and Oman -- passing through or near the Strait of Hormuz, a report said on Friday.

Even after adjusting for GAIL's US LNG swap volumes, effective exposure moderates to 66 per cent, which means concentration risk remains significant, Elara Capital analysts said in the report.

The report noted that any disruption in the Hormuz corridor would likely affect the sector sequentially, from terminal utilisation to transmission throughput and downstream industrial margins.

Terminal-level exposure is highest at Petronet LNG's Dahej terminal, which handled 14.8 million tonnes in 2025, with 76 per cent of volumes sourced via the Strait.

Smaller terminals such as Kochi and Chhara are fully dependent on the Middle East, while Mundra (88 per cent), Dhamra (65 per cent), and Ennore (62 per cent) also face elevated risk, the brokerage said. Hazira (25 per cent) and Dabhol (0 per cent) benefit from LNG sourced from the US, Russia, and Australia.

PLNG and Gujarat State Petronet were highlighted as the most vulnerable to supply shocks.

PLNG's 77 per cent exposure to the Strait directly affects regasification revenue; the company has issued force majeure notices to GAIL, IOCL, and BPCL, citing disruptions at Ras Laffan, Qatar. GUJS, with 62 per cent of its CY25 transmission volume reliant on the Strait, faces similar risks.

Gujarat Gas Ltd (GGL) is exposed on both margins and volumes, with LNG forming 73 per cent of its supply, primarily serving the Morbi industrial cluster.

With 48 per cent dependency on the Strait, rising spot LNG prices could erode GGL's competitiveness against alternative fuels such as propane, said the report.

Moreover, the company has issued force majeure notices to industrial customers and will curtail supply effective March 6, 2026, and may reduce Daily Contracted Quantities (DCQ) to industrial clients, the brokerage said.

GAIL's marketing segment, with only 16 per cent exposure, is the most resilient, supported by diversified contracts from the US, Russia, and Australia. The actual dependency is estimated at 30 per cent, according to the brokerage.

- IANS

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Reader Comments

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Priya S
The impact on Morbi's ceramic industry is worrying. So many MSMEs and jobs depend on affordable gas. Force majeure notices and supply cuts will hit them hard. Hope there's a contingency plan to support these industries through this. 🇮🇳
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David E
Interesting analysis. It clearly shows the risk concentration. GAIL seems to have played it smart with a diversified portfolio. Other PSUs should learn from this and not put all their eggs in one basket, even if Qatari gas is cheaper in the short term.
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Ananya R
While diversification is key, we also need to seriously ramp up our own domestic natural gas production. Betting on imports alone, from any region, is not sustainable for a growing economy like ours. "Atmanirbhar Bharat" should mean energy independence too.
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Suresh O
The report is an eye-opener, but I wish it also suggested concrete steps. What can be done in the next 1-2 years to mitigate this? Building more terminals like Dabhol that can handle non-Middle East LNG seems to be part of the answer.
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Kavya N
This is why long-term planning is crucial. Short-term cost savings from Qatari gas have created a long-term strategic risk. Our energy planners need to look at the next 20 years, not just the next quarter. Hope the right lessons are learned.

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