India Widens its Gas Sourcing Supply from US to Brazil Amid Gulf Conflict

The aftermath of a peace deal between the United States and Iran is exposing a divergence in global energy markets, with gas supply chains seen more structurally vulnerable than oil due to production-side uncertainties, particularly in Qatar-linked systems, said senior government officials.

India is therefore widening its gas sourcing footprint from Canada and the United States to emerging LNG suppliers such as Brazil and Mozambique, amid concerns that global gas supply recovery could take longer than oil markets to normalize, said officials.

The country has stepped up imports of LNG and LPG from a wider set of suppliers and increased purchases of LPG from the US, while also expanding crude sourcing from countries such as Venezuela, Oman, Brazil and Angola. The move is part of a broader strategy to diversify energy supplies and reduce dependence on any single geography as geopolitical risks continue to reshape global energy flows.

"LNG facilities are coming up all over the world including Mozambique and Brazil. In the short term, most of our purchases are spot purchases. We have stepped up gas supplies from a lot of countries like Canada, US, Algeria, among others. And there are also countries where we have actually contracted cargos from," a senior government official said.

"The number of countries from which we are importing has increased significantly on all three fronts, LPG, LNG as well as crude. We will continue to diversify our sourcing to mitigate risks from any geopolitical shock and not depend on a particular geography," the official added.

The shift reflects a broader effort to reduce dependence on any single geography and increase flexibility across global energy markets through both spot purchases and contracted cargoes, this official said.