India LNG Prices Soar Amid Iran War Disruptions
India's energy sector is facing increasing pressure due to soaring liquefied natural gas (LNG) prices, which have surged above $23/MMBtu. The sharp rise in costs is attributed to geopolitical tensions surrounding the Iran war and its impact on global supplies.
The disruptions to Qatar's export infrastructure following Iranian attacks in March, coupled with continued shipping difficulties through the Strait of Hormuz, have constrained available supplies.
As a result, Indian state-backed companies are turning to the spot market for LNG. GAIL India recently paid more than $23 per million British thermal units (MMBtu) for an LNG shipment scheduled for September, while Gujarat State Petroleum Corp also reportedly paid in the mid-$23 range for a similar cargo.
This trend highlights the growing pressure on India's energy import bill and may have far-reaching implications for industries reliant on imported natural gas, such as fertiliser production.