India's LNG Prices Soar Amid War-Driven Supply Crunch
India's state-run energy companies are paying record prices for liquefied natural gas (LNG) due to the ongoing Iran war, which has disrupted supplies and driven up costs. Gail India Ltd., a state-run gas company, recently paid over $23 per million British thermal units (mmbtu) for a cargo to be delivered in September. This price is among the highest imported into India since 2022.
The war has damaged Qatar's massive export terminal and blocked ships from passing through the Strait of Hormuz, forcing Indian buyers to turn to the spot market where prices are set by individual transactions. As a result, state-backed energy companies in India are bidding up prices to secure supplies for fertilizer producers, which use natural gas.
Gujarat State Petroleum Corp. also paid in the mid-$23 range per mmbtu for a September cargo, according to sources familiar with the matter. Meanwhile, Bharat Petroleum Corp. agreed to buy an LNG cargo from the spot market this week, although the price was not confirmed by Bloomberg.