Commodities
India Faces Record-High LNG Prices Amid Strait of Hormuz Disruptions
India is facing high prices for liquefied natural gas (LNG) due to disruptions in the Strait of Hormuz caused by the ongoing US-Iran conflict.
The country's energy majors, including Gail India Ltd. and Gujarat State Petroleum Corp., have been forced to purchase LNG at prices above $23 per million British thermal units (mmbtu), the highest since 2022.
These cargoes are the most expensive LNG shipments imported into India in recent years, according to people familiar with the matter who spoke to Bloomberg.
The government has been seeking to support fertilizer producers that use natural gas by purchasing LNG from the spot market, where prices have surged due to increased demand and reduced supply.