India's LNG Imports Soar to Six-Year High Despite Higher Prices

India's liquefied natural gas imports jumped to their highest level in nearly six years in August, reaching 2.6 million tons. This surge is surprising given that spot prices have doubled since the start of the Iran war and India usually reduces LNG purchases during such times.

The country bought less LNG initially as the government rationed fuel and curbed supply to some fertilizer producers. However, deliveries are now rebounding despite the high prices.

Most of the recent buying was done by fertilizer producers who were backed by government subsidies, said Kesher Sumeet, senior global LNG analyst at Energy Aspects Ltd. Some city-gas distributors also had to turn to spot LNG after the government limited domestic natural gas supplies.