India has successfully secured adequate liquefied natural gas (LNG) supplies to meet demand until September by diversifying its sourcing strategy. According to reports from Mint, the country has widened its fuel procurement from the US, United Arab Emirates, and Angola following Iranian attacks on Ras Laffan Industrial City in Qatar. This development is particularly significant for the world's fourth-largest LNG importer, as gas supplies had become a serious concern after the US-Israel war on Iran broke out on 28 February, forcing the government to restrict industrial use.
The US has become the top supplier of LNG to India during the April-May period, with cargoes valued at $728.29 million, representing a more than threefold increase from $199.92 million a year ago, as reported by Mint. Other key suppliers include Nigeria ($580 million), Oman ($517.9 million), Angola ($301 million), and Trinidad ($142.56 million). Before the war, Qatar supplied about 50% of India's LNG requirements, followed by the UAE, the US and Oman. QatarEnergy stopped producing LNG and declared force majeure after Iranian missile attacks on Ras Laffan Industrial City in March, with experts indicating the damaged LNG facilities could take three to five years to repair.
Oil prices experienced significant volatility during the week ending July 31, with Brent crude futures for October trading at $88.58 per barrel on Friday, down 3.4% from last Friday's close of $91.68, according to Anadolu Agency. The decline came after US President Donald Trump paused military strikes on Iran, raising expectations that Washington and Tehran could return to negotiations. However, concerns over security in the Strait of Hormuz and the Bab el-Mandeb Strait continued to limit losses, with markets closely monitoring talks between Iran and Oman aimed at restoring safe maritime navigation through these strategic waterways. Oil prices ended July with a $1 increase per barrel, their largest monthly gain since March, due to concerns about global crude flow after Iranian reports said that some tankers had been forced to return in the Strait of Hormuz.
The West Asia conflict has created significant challenges for India's city gas distribution sector, with companies like Mahanagar Gas experiencing margin pressure and supply disruptions. According to Investing.com, Mahanagar Gas reported a 46.83% quarter-over-quarter increase in net profit to ₹193.70 crore in Q1 FY27, though this remained 39.39% below the year-ago period. The company's stock fell 6.98% to $0.20, trading near the bottom of its 52-week range of $0.185 to $0.26. Management indicated plans to increase capital expenditure to ₹1,500-1,800 crore in FY27, up from ₹350 crore in Q1, describing the spending as "preponing" planned investment to capture temporary opportunities in domestic PNG expansion. The West Asia conflict has disrupted LNG supply chains and created sourcing uncertainty for Q2 FY27, with limited visibility on gas availability and pricing.
Despite short-term security measures, experts project structural challenges for India in the medium to long term. According to Harsh V. Pant from the Observer Research Foundation, while India's management has been reasonably well in the short term, there is certainly a serious structural challenge for the country. The state-run oil and gas companies and refiners have two months of supplies already tied up, with officials indicating that any crunch is not expected in the near term. However, with no end seen to the West Asian conflict in the immediate future, experts project US supplies to India will increase, though there may be supply crunches in the months ahead as Europe's heating demand for winter gains momentum. The 20% government-mandated curtailment in industrial and commercial segments also weighs on near-term volume growth, with margin pressure expected to continue for at least one to two months.
