Indian Energy Companies Face Record High LNG Prices Amid Iran War Disruptions
Indian energy companies are struggling to secure liquefied natural gas (LNG) supplies due to disruptions in global markets caused by the Iran war. The prices for these imports have skyrocketed, with Gail India Ltd., a state-run gas company, paying over $23 per million British thermal units (mmbtu) for a cargo scheduled for delivery in September.
This price is among the highest LNG cargoes imported into India since 2022 and represents a significant increase from previous years. The disruptions to global supplies are largely due to damage to Qatar's major export terminal, which was attacked by Iran in March, as well as ongoing tensions in the Strait of Hormuz.
Indian state-backed energy companies are turning to the spot market to secure supplies, competing with European LNG purchasers who have seen gas prices climb to a five-month high. Bharat Petroleum Corp. has also agreed to purchase an LNG cargo from the spot market this week, although the price could not be confirmed.