economy
April 4, 2026
How Russia fits into India’s plan to secure LPG supplies from Hormuz
With 90% of imported LPG running through Strait of Hormuz, India is testing Baltic and Pacific routes to deliver Russian LPG
TL;DR
- India faces LPG shortages due to import dependence (nearly 60%) and transit through the Strait of Hormuz, which is impacted by the Middle East conflict.
- Domestic LPG production is insufficient, remaining flat while consumption rises, leading to increased reliance on imports.
- Limited storage capacity (2-3 weeks of demand) narrows India's response window during supply disruptions.
- India is exploring alternative supply routes from Russia via the Baltic (Ust-Luga) and Pacific (Vladivostok), potentially utilizing the Northern Sea Route or a Chennai-Vladivostok corridor.
- These alternative routes offer geographic and route diversity but face challenges like distance, ice conditions (NSR), and geopolitical risks (Strait of Malacca).
- Russia's role is strategic for "redrawing risk" and signaling rather than substituting Gulf supplies in terms of volume.
- Diversifying LPG supply routes is crucial, especially given the political sensitivity of fuel shortages for the government's clean-cooking initiatives.
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