India is considering sourcing up to a quarter of its liquefied natural gas imports in the contract year 2027 from the United States. Three sources familiar with the matter told Reuters that the move would reduce New Delhi’s reliance on the Middle East and help efforts to reach a commercial agreement with Washington.

India experienced its worst shortage of liquefied natural gas in history earlier this year. The war and the closure of the Strait of Hormuz disrupted supply, and the government resorted to emergency measures, diverting feedstock for petrochemical units to domestic use.

India is the world’s second-largest LNG importer and imports about 65% of its consumption. In 2024, nearly 90% of the country’s LNG imports were supplied by the UAE, Qatar, Kuwait and Saudi Arabia.