New Delhi: Despite of many price increase, India has imported more Liquefied Natural Gas (LNG) in May 2026. As per recent Kpler data, “LNG imports increased to around 2.1 million tonnes (mt) in May 2026, up from about 1.7 mt in March 2026 and 1.9 mt in April 2026, coming close to the peak level seen in January 2026. This rise is significant because Asian spot LNG prices (JKM) had jumped to a peak of $25 per MMBtu in late March 2026 following Qatar’s production halt and the closure of the Hormuz Strait. Prices later eased to around $17-18 per MMBtu in May, but were still about 70% higher than the pre-crisis level of around $10 per MMBtu. While countries such as South Korea and Japan reduced their LNG imports, India increased its imports and continued buying despite the higher costs.”
Kpler data further says, “India’s power consumption surged >11% yoy in May ’26. Peak demand hit an all-time high of >270GW. With coal carrying ~70% of load and hydro 10%, Ministry of Power directed all gas-based plants on standby for heatwave shortfall coverage, turning high-cost LNG into a non-negotiable grid necessity. Additionally, sharp increase of ~5mmscmd (equivalent to 0.12mt LNG/month) in LNG demand from Morbi ceramic clusters due to non-availability of propane has also contributed meaningfully to increase in LNG imports.
“Qatar supplied ~45% of India’s LNG imports in 2025 before its Mar ’26 shutdown. India rapidly rerouted to costlier alternatives: US exports to India surged 6x (137 KT Jan → 907 KT May), Nigeria doubled shipments to 480 KT, and Oman averaged ~500 KT/month for Mar & Apr’26. Despite paying a premium over legacy Qatari contract prices, India had no choice but to absorb cost differential. That makes India the price inelastic large LNG buyer in Asia. US LNG Atlantic routing, no Hormuz exposure is exactly what India needs now,” the report added.
