India Diversifies LNG Imports Amid West Asia Conflict

India has secured its liquefied natural gas (LNG) supplies through September by diversifying imports from the US, UAE, and Angola. This move avoids immediate energy shortages but comes at a higher cost, as companies are now paying spot market prices due to the loss of stable contracts with Qatar.

The conflict in West Asia has disrupted supply chains, forcing India to shift its sourcing strategy. According to recent data from the Ministry of Commerce and Industry, imports from the US have jumped significantly, reaching $728.29 million during April and May, up from $199.92 million in the same period last year.

The cost of this diversification is substantial, with spot market prices for LNG at $21.37 per mmBtu, up from $13.36 before the conflict intensified. This will likely put pressure on profit margins for fertilizer producers and industrial users that rely on natural gas as a primary raw material.