India has increased its liquefied natural gas (LNG) imports from the US, Oman, and Nigeria to make up for the shortfall in March. LNG imports from Qatar and the UAE will drop to zero by the end of March 2026 due to the Iran war.
According to Sam Reynolds, research lead at the Institute for Energy Economics and Financial Analysis, the country’s LNG sector is among the most exposed in Asia to the Iran conflict due to its reliance on Qatar and the UAE for nearly 60% of its supply. He also stated that even once the conflict is fully resolved, oil and gas facilities in the Persian Gulf will take several months to resume normal operations, and 17% of Qatar’s LNG export capacity will be offline for up to five years. Spot market LNG prices in Asia have doubled since hostilities began and are widely projected to remain elevated through 2027.
Reynolds noted that the short supply of LNG has not had any significant impact on India’s power generation as the share of gas in the country’s electricity mix has declined to below 1.5%. He added that India has instead turned to coal to mitigate power supply risks, while accelerating the commissioning of new wind and battery storage projects. Reynolds also warned that meeting peak electricity demand in the upcoming summer will remain a challenge amid the Iran conflict, though the power sector in India has remained relatively insulated from LNG price shocks.
According to Reynolds, similar to China, India’s LNG imports have fluctuated in recent years due to high prices. The country’s annual purchases fell by 6.4% in 2025. In both countries, LNG imports in 2025 were lower than in 2020.
“Alongside efforts to reduce energy demand and stabilize prices, several countries are reverting to coal, expanding nuclear capacity, or fast-tracking the deployment of battery storage and renewable technologies like wind and solar. Some are already canceling LNG projects,” said Sam Reynolds.
National responses vary, but one lesson is clear: just four years after the 2022 global energy crisis, geopolitical disruptions are once again undermining the case for LNG as an affordable, secure energy source for Asian countries.