India Pays Record Prices for LNG Amid Iran War Disruptions
India's state-run energy companies are paying record prices for liquefied natural gas (LNG) as the ongoing Iran war disrupts global supplies. According to people familiar with the matter, Gail India Ltd. recently purchased a cargo of LNG at over $23 per million British thermal units to be delivered in September, marking the highest price paid by India since 2022. Gujarat State Petroleum Corp. also bought an LNG cargo in the mid-$23 range for delivery in September.
India typically imports LNG through long-term contracts with Qatar, but the war has damaged Qatar's massive export terminal and ships are still blocked from passing through the Strait of Hormuz. This has forced Indian energy companies to turn to the spot market, driving up prices. Additionally, India is competing with LNG buyers in Europe, where gas prices have soared to a five-month high.
Bharat Petroleum Corp. also agreed to buy an LNG cargo from the spot market this week, although Bloomberg could not confirm the price. The Indian government is pushing to support fertilizer producers, which use natural gas, by importing more LNG through the spot market.