Imported LNG, fertilisers may turn costlier & strain the fisc

AS HOSTILITIES INTENSIFY and shipping activity through the Strait of Hormuz faces disruption risks, India’s fertiliser, LNG and LPG supply chains are emerging as critical pressure points, with potential implications for the farm economy, cooking fuel supply and macro stability.

- SAURAV ANAND, SANDIP DAS & RAGHAVENDRA KAMATH

The Strait of Hormuz remains a critical global energy choke point, with nearly 20% of global liquefied natural gas (LNG) shipments transiting through the route. “In FY25, about 54% of India’s LNG imports were routed through the Strait of Hormuz,” said Prashant Vasisht, senior vice president and co-group head, corporate ratings, Icra. As per Vortexa data, around 20% of global LNG transits the Strait of Hormuz, and over 90% of Qatar’s LNG exports must pass through this route.