India’s LNG & LPG Shortage: India is currently facing a natural gas supply crunch, but this is expected to be temporary as new supply routes and increased domestic production are set to alleviate the situation. Government sources indicate that while higher prices have made imports from distant sources such as Norway and the U.S. economically viable, these shipments take longer to arrive, potentially causing short-term shortages.
An official, speaking anonymously, revealed that India’s LPG output has increased by 10% following government directives to prioritize household supplies over industrial users. On March 5, the Ministry of Petroleum and Natural Gas instructed all oil refining companies to maximize production, ensuring all available propane and butane are used for LPG output.
The official noted that while it is challenging to quickly pivot LNG imports, options beyond Qatar, such as Norwegian and American gas, are viable despite longer transit times. Previously, Qatar gas was priced at $6-8 per MMBtu, but with current prices at $15 per MMBtu, alternatives become economically feasible.
Government officials have diversified both LPG and LNG supplies, with cargoes already arriving. Although distant geographies cause delays, the supplies are en route. Shipping estimates suggest a two-month turnaround for vessels traveling to and from the U.S. or Norway.
The government is prioritizing uninterrupted LPG supplies to households, aiming to avoid jeopardizing commercial entities. A committee has been formed to address restaurateurs’ concerns over potential shortages of commercial LPG cylinders. An official stated that the committee is in contact with restaurateurs to address genuine requirements and provide relief as feasible.
Published in SouthAsianDesk, March 11, 2026
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