LNG Prices Soar as India Bids Up Supplies Amid Iran War Disruptions

India's energy companies are paying record-high prices for liquefied natural gas (LNG) on the spot market due to disruptions in 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 to be delivered in September.

This price is the highest LNG import cost for India since 2022, according to people familiar with the matter. Gujarat State Petroleum Corp. also paid in the mid-$23 range per mmbtu for a September cargo.

The Iran war has damaged Qatar's massive export terminal and blocked ships from passing through the Strait of Hormuz, leading to increased competition for LNG buyers, including those in India and Europe. As a result, Indian energy companies are turning to the spot market and bidding up prices to secure supplies.