Indian Energy Companies Pay Record Prices for LNG Amid Iran War Disruptions

Indian energy companies are paying record prices for liquefied natural gas (LNG) due to disruptions in global supplies caused by the Iran war. The country's state-run gas company, Gail India Ltd., recently paid over $23 per million British thermal units (mmbtu) for a cargo scheduled for delivery in September.

Gujarat State Petroleum Corp. also paid in the mid-$23 range for a September cargo, marking some of the highest LNG prices imported into India since 2022.

The disruptions to global supplies have led Indian energy companies to turn to the spot market, where they are competing with European buyers who are also seeking to secure gas supplies amid high prices. Bharat Petroleum Corp. has agreed to purchase an LNG cargo from the spot market this week, although the price of that cargo was not confirmed.