India Has Highest Exposure to Middle East Among Major LNG Importers

India's LNG Import Vulnerability

Key Findings:

• 59.5% of India's liquefied natural gas (LNG) imports in 2024 came from West Asian countries, significantly higher than the levels seen among other major importers.
• India's reliance on Middle Eastern suppliers is a key vulnerability, particularly amid geopolitical tensions in the region.

Global LNG Market:

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• The global LNG market is 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 approximately $15 billion, ranking it among the leading buyers in the global market.

Diversification Opportunities:

• India's reliance on a limited set of exporters is common in the global LNG market, but its exposure to the Middle East stands out.
• Australia, the world's largest LNG exporter, shipped about $42.7 billion worth of LNG in 2024, but India accounted for only 0.1% of the exports.
• India's share in US LNG exports stood at about 7.2%, while imports from Russia accounted for just 0.3%.

Supplier Concentration:

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• The top five exporters account for about 83.5% of India's LNG imports, indicating limited diversification in sourcing.
• This share is higher than the global average of about 72.4% and exceeds the concentration levels seen in major LNG-importing economies such as Japan and South Korea.

Risk Assessment:

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