India LNG imports declined sharply in May 2026 as conflict in West Asia disrupted energy shipments through the Strait of Hormuz. Lower import volumes also reduced the country’s dependence on overseas natural gas supplies.
LNG Imports Decline in May
Data from the Petroleum Planning and Analysis Cell (PPAC) showed that India imported 2.27 billion standard cubic metres (bcm) of LNG in May. The figure was down from 2.87 bcm during the same month last year.
The decline of nearly 21% came as geopolitical tensions affected one of the world’s busiest energy shipping routes. Despite lower volumes, India’s LNG import bill remained stable at about $1.1 billion.
Natural Gas Consumption Falls
India’s overall natural gas demand also weakened during May. LNG consumption dropped to 5.1 bcm from 5.8 bcm a year earlier.
Domestic gas production also declined. Output stood at 2.84 bcm compared with 2.98 bcm in May 2025. Production remained below the government’s target of 3.047 bcm for the month.
As a result, India’s dependence on imported natural gas eased to 44.8% from 49.3% a year earlier.
Strait of Hormuz Disrupts Energy Trade
The conflict in West Asia created supply challenges for energy cargoes moving through the Strait of Hormuz. The waterway is a critical route for global oil and LNG exports.
The disruption reduced LNG arrivals into India and affected overall gas availability during the month.
Russian Crude Imports Continue Rising
While India LNG imports declined, the country increased purchases of Russian crude oil. According to the Centre for Research on Energy and Clean Air (CREA), India remained the world’s second-largest buyer of Russian fossil fuels in May.
India imported an estimated €5.8 billion worth of Russian hydrocarbons during the month. Crude oil accounted for about €4.8 billion, while oil products and coal contributed €550 million and €429 million, respectively.
CREA data showed that India’s total crude oil imports increased 8% month-on-month. Russian crude purchases alone rose 21% during May.
Indian Refineries Expand Russian Purchases
Several major refining hubs increased imports of discounted Russian crude. Deliveries to the Vadinar refinery in Gujarat rose 36% from April levels, while arrivals at the Jamnagar refining complex increased 14%.
State-owned refiners also expanded purchases. Russian crude imports at New Mangalore increased 13%, while deliveries to the Visakhapatnam refinery jumped 42%.
The Paradip refinery in Odisha recorded its highest Russian crude imports in two years. The trend highlights India’s continued preference for competitively priced Russian oil despite volatility in global energy markets.
