India has the highest exposure to Middle East among major LNG importers

India's more concentrated in the middle east

• India relies on Middle East for nearly 60 percent of LNG imports
• Top five exporters supply 83.5 percent of India's LNG needs
• India has untapped opportunities to diversify LNG sourcing

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India’s reliance on a handful of suppliers for liquefied natural gas (LNG) imports could become a key vulnerability, particularly amid geopolitical tensions in the Middle East that threaten to disrupt energy flows.

A Moneycontrol analysis shows that India’s reliance on Middle Eastern suppliers is far higher than that of most major LNG-importing economies. While dependence on a limited set of exporters is common in the global LNG market, India’s exposure to the region stands out.

Nearly 59.5 percent of India’s LNG imports came from West Asian countries in 2024, significantly higher than the levels seen among other major importers. China sourced about 26.5 percent of its LNG from the region, while the share for Japan was just 10.7 percent.

Among other Asian buyers, South Korea’s dependence stood at 35.3 percent and Thailand’s at 26.8 percent. European importers showed even lower exposure: France sourced only about 1.3 percent of its LNG from the Middle East, while the Netherlands had virtually no reliance on the region.

Another layer of risk arises from supplier concentration. The top five exporters account for about 83.5 percent of India’s LNG imports, indicating limited diversification in sourcing. This share is higher than the global average of about 72.4 percent and exceeds the concentration levels seen in major LNG-importing economies such as Japan and South Korea.

India remains among the world’s major LNG buyers. Global LNG imports were valued at around $200 billion, with Asian economies accounting for the bulk of demand. China was the largest importer, purchasing LNG worth over $44 billion, followed by Japan at about $41 billion and South Korea at around $29 billion.

India’s LNG imports totalled roughly $15 billion, ranking it among the leading buyers in the global market.

Despite the heavy reliance on Middle Eastern suppliers, the analysis points to significant untapped opportunities for diversification. For instance, Australia, the world’s largest LNG exporter, shipped about $42.7 billion worth of LNG in 2024, but India accounted for only 0.1 percent of the exports.

"We are scouting for more LNG cargoes, re-prioritising gas allocations so that no Indian consumer is directly impacted," said a government source.

India’s share in US LNG exports stood at about 7.2 percent, while imports from Russia accounted for just 0.3 percent. India also did not import LNG from Malaysia, which exported roughly $14 billion worth of LNG in 2024.

By contrast, India accounts for a substantial share of several Middle Eastern suppliers’ exports. It represents 18.1 percent of Qatar’s LNG exports, 11.3 percent of Oman’s, and as much as 56 percent of the UAE’s LNG shipments.

While India has over three weeks of reserves, a prolonged conflict and disruptions to shipping routes could spell trouble if India doesn’t move quickly to diversify its supply sources.