Nearly 69% of India’s domestic liquefied natural gas (LNG) imports in 2025, totaling 17.5 million tonnes, were sourced from West Asian nations like Qatar, the UAE, and Oman, passing through or near the Strait of Hormuz, a recent report revealed. Elara Capital analysts highlighted that even after adjusting for GAIL’s US LNG swap volumes, the effective exposure remains at 66%, signifying a significant concentration risk. The report emphasized that any disruption in the Hormuz corridor could impact the sector from terminal utilization to downstream industrial margins.
Terminal-level exposure is particularly high at Petronet LNG’s Dahej terminal, which managed 14.8 million tonnes in 2025, with 76% of volumes originating from the Strait. Smaller terminals like Kochi and Chhara rely entirely on the Middle East, while Mundra (88%), Dhamra (65%), and Ennore (62%) face heightened risks, according to the brokerage. Hazira (25%) and Dabhol (0%) benefit from LNG sources in the US, Russia, and Australia.
The report pointed out that PLNG and Gujarat State Petronet are the most susceptible to supply shocks. PLNG’s 77% exposure to the Strait directly impacts regasification revenue, leading the company to issue force majeure notices to GAIL, IOCL, and BPCL due to disruptions at Ras Laffan, Qatar. GUJS, with 62% of its CY25 transmission volume reliant on the Strait, faces similar risks.
Gujarat Gas Ltd (GGL) is exposed on both margins and volumes, with LNG constituting 73% of its supply, primarily serving the Morbi industrial cluster. The report warned that with a 48% dependency on the Strait, GGL’s competitiveness against alternative fuels like propane could be compromised by rising spot LNG prices. Additionally, GGL has issued force majeure notices to industrial customers, planning to curtail supply from March 6, 2026, and potentially reduce Daily Contracted Quantities (DCQ) to industrial clients.
GAIL’s marketing segment, with only 16% exposure, is deemed the most resilient, supported by diversified contracts from the US, Russia, and Australia. The brokerage estimated the actual dependency at 30%, providing a buffer against potential disruptions.
