Indian Energy Companies Pay Record Prices for LNG Amid Global Disruptions
Indian energy companies are paying some of their highest prices for liquefied natural gas (LNG) in years due to global supply disruptions linked to the Iran war. State-run GAIL India recently paid more than $23 per million British thermal units (mmBtu) for a September LNG cargo, while Gujarat State Petroleum Corp. also paid in the mid-$23 per mmBtu range for a similar delivery.
The prices are among the most expensive LNG cargoes imported into India since 2022, according to sources who spoke on condition of anonymity. Indian state-backed energy companies have turned to the spot market as the government seeks to ensure gas supplies for fertiliser producers, which rely heavily on natural gas.
India has traditionally sourced much of its LNG through long-term contracts with Qatar, one of the world's largest LNG exporters. However, Qatar's major export terminal was damaged by Iranian attacks in March, while shipping through the Strait of Hormuz remains severely disrupted.