India has more than doubled the number of countries supplying liquefied natural gas (LNG), expanding its import network from six to 15 nations as the country seeks to strengthen energy security and reduce exposure to global supply disruptions.
The government disclosed the development in a written response to the Rajya Sabha on Monday. The broader diversification strategy is designed to reduce India's dependence on any single supplier, geographic region or maritime transit route. The move comes as geopolitical tensions, shipping risks and volatility in international energy markets continue to create uncertainty for major energy-importing economies.
Minister of State for Petroleum and Natural Gas Suresh Gopi said India has also significantly broadened its crude oil sourcing network. The number of countries supplying crude oil has increased from 27 to 41. According to the minister, wider sourcing has improved India's ability to manage potential supply interruptions and fluctuations in global energy markets.
The expansion of India's LNG supplier base is particularly important as natural gas assumes a larger role in the country's energy mix. The government is promoting greater use of natural gas while seeking to reduce dependence on more polluting fuels. A broader LNG procurement network can provide Indian buyers with greater flexibility to redirect purchases when geopolitical events, shipping disruptions or regional shortages affect specific supply routes.
The Petroleum and Natural Gas Ministry said it continuously monitors geopolitical developments, maritime risks and international supply conditions. It coordinates with state-owned oil and gas companies and other stakeholders to help maintain the availability of crude oil, LNG and petroleum products.
India is also strengthening its strategic fuel-storage infrastructure. Indian Strategic Petroleum Reserve Limited (ISPRL) currently operates three strategic crude oil storage facilities in Andhra Pradesh and Karnataka, with combined capacity of 5.33 million metric tonnes (MMT).
The government has approved two additional commercial-cum-strategic petroleum reserve projects at Chandikhol in Odisha and Padur in Karnataka. Together, these facilities are expected to add 6.5 MMT of storage capacity after completion, although no updated commissioning schedule has been provided.
Separately, ONGC is developing a 1.75 MMT strategic petroleum reserve in Karnataka. Half of this capacity will be maintained for strategic purposes, while the remaining portion will be used for ONGC's commercial operations.
Overall, India's strategy combines diversified imports with expanded fuel storage. The approach is intended to improve supply resilience, limit exposure to geopolitical shocks and provide greater protection against sudden disruptions in international energy markets.
Impact on Product and ChemAnalyst Chemical Commodity Prices
The expansion of India's LNG sourcing network should improve supply security and reduce the country's exposure to disruptions from individual suppliers or transit routes. In the near term, diversified procurement could moderate LNG price volatility by providing buyers with alternative sources, although global gas prices may still rise during major geopolitical or shipping disruptions. More reliable LNG availability could support gas-intensive industries, including ammonia, methanol, hydrogen and other petrochemical production. Consequently, prices of gas-linked chemical commodities could face downward or stabilizing pressure if feedstock availability improves. However, stronger global demand for LNG and higher freight costs could limit the price benefit, particularly during supply-tight periods.
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