India’s energy security hangs by a thread as nearly 69% of its liquefied natural gas (LNG) imports in 2025 traversed the volatile Strait of Hormuz. A detailed report from brokerage firm Elara Capital reveals that around 17.5 million tonnes—or 63 MMSCMD—of LNG came from West Asian nations like Qatar, UAE, and Oman, all routed through or near this critical chokepoint.
Even after adjusting for GAIL’s US LNG swap volumes, India’s effective dependency stands at a staggering 66%. This heavy reliance exposes the nation to severe supply disruptions, with cascading effects across the gas sector. Any blockade or tension in the Strait could cripple LNG terminals, transmission networks, and industrial profitability.
Petronet LNG’s Dahej terminal bears the brunt, handling 14.8 million tonnes in 2025, with 76% sourced via Hormuz. Smaller facilities like Kochi and Chhara are 100% dependent on Middle Eastern supplies, while Mundra (88%), Dhamra (65%), and Ennore (62%) face similar vulnerabilities. In contrast, Hazira (25%) and Dabhol (0%) draw from diversified sources including the US, Russia, and Australia.
The fallout could hit Petronet LNG hardest, with 77% of its volumes at risk, threatening regasification revenues. The company has already issued force majeure notices to GAIL, IOCL, and BPCL citing disruptions at Qatar’s Ras Laffan plant. Gujarat State Petronet (GSPL) follows closely, with 62% of its 2025 transmission volumes exposed.
Industrial giant Gujarat Gas Limited (GGL) isn’t spared either. With 73% of its supply from LNG feeding Morbi’s clusters, and 48% Hormuz-dependent, rising spot prices could erode competitiveness against propane. GGL has notified industrial clients of force majeure and plans to cut supplies from March 6, 2026, potentially reducing daily contracted quantities.
Amid the gloom, GAIL’s marketing segment stands resilient, with just 16% reliance on Hormuz—adjusted to around 30%—bolstered by contracts from the US, Russia, and Australia. As geopolitical tensions simmer, India must accelerate diversification to safeguard its energy future.