New Delhi, March 6: A significant portion of India’s liquefied natural gas (LNG) imports remains tied to the Strait of Hormuz. In 2025, approximately 69 percent of India’s total LNG imports, equating to around 17.5 million tons (63 MMSCMMD), originated from West Asian countries such as Qatar, the United Arab Emirates (UAE), and Oman, traversing routes through or around the strait. This information was revealed in a report released by brokerage firm Elara Capital on Friday.
Analysts at Elara Capital noted that even after adjusting for the U.S. LNG swap volumes from Gail, India’s effective dependence remains around 66 percent. This indicates a high level of reliance on the region, which poses ongoing supply risks.
The report warns that any disruption in the Strait of Hormuz could sequentially impact the entire gas sector. The effects could be felt across LNG terminal utilization, gas transmission, and the profitability of industrial sectors.
The highest risk at the terminal level is observed at Petronet LNG’s Dahej terminal, which handled approximately 14.8 million tons of LNG in 2025, with 76 percent of the gas arriving via the Strait of Hormuz.
Additionally, smaller terminals like Kochi and Chhara are entirely dependent on gas from the Middle East. Meanwhile, Mundra (88 percent), Dhamra (65 percent), and Ennor (62 percent) terminals also heavily rely on this route, increasing their exposure to risk.
In contrast, Hazira (25 percent) and Dabhol (0 percent) terminals enjoy some relief, as their incoming LNG primarily comes from the U.S., Russia, and Australia.
The report indicates that supply disruptions could most adversely affect Petronet LNG (PLNG) and Gujarat State Petronet. PLNG’s dependence on the Hormuz route is about 77 percent, potentially impacting its regasification revenue directly. The company has issued a force majeure notice to Gail, IOCL, and BPCL, citing disruptions at Qatar’s Ras Laffan plant.
Similarly, Gujarat State Petronet (GUJSP) relies on this route for about 62 percent of its transmission volume, exposing it to similar risks.
According to the report, Gujarat Gas Limited (GGL) may also be affected in terms of both margins and volumes. Approximately 73 percent of the company’s total gas supply comes from LNG, primarily supplied to the industrial cluster in Morbi.
GGL’s dependence on the Strait of Hormuz stands at 48 percent, meaning rising spot market LNG prices could diminish the company’s competitiveness against alternative fuels like propane.
The brokerage firm noted that GGL has issued force majeure notices to industrial customers and has decided to reduce gas supply starting March 6, 2026. Additionally, the daily contracted quantity (DCQ) for industrial customers may also be decreased.
The report highlights that Gail’s marketing segment is in the strongest position, with only a 16 percent reliance on the Hormuz route. The company has diversified gas supply contracts from the U.S., Russia, and Australia, significantly reducing risk. The actual dependence is estimated to be around 30 percent.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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