Hormuz bottleneck puts LNG imports at high risk

Nearly 69% of India's LNG imports depend on the Strait of Hormuz

- SAURAV ANAND

NEARLY 69% OF India’s liquefied natural gas (LNG) imports are reliant on the Strait of Hormuz, exposing the country to potential disruptions in the critical West Asia shipping corridor, according to a report by Elara Securities.

The report, titled “LNG: Steering through the Hormuz bottleneck’, notes that by calendaryear 2025, around 17.5 million tonnes of LNG—equivalent to 63 million standard cubic metres per day (mmscmd)—will be sourced from Qatar, the UAE, and Oman, with shipments either transiting through or near the Strait.

The report noted that even after adjustments for supply swaps, exposure remains high. “After adjusting for GAIL’s US LNG swap optimisation, the effective system exposure moderates to about 66%, but the concentration risk is material.”