Energy companies in India are currently facing some of the highest prices for liquefied natural gas (LNG) in years. This spike in costs is primarily driven by ongoing disruptions in fuel supplies caused by the conflict in Iran. The situation has intensified demand for LNG on the spot market, leading to increased prices that are affecting the energy sector in India.
Because the deals aren’t public, those are the most expensive LNG cargoes imported into the India since 2022, according to the people who asked not be name. Gail India Ltd., a state-run gas company, recently paid more than $23 per million British thermal units for a cargo to be delivered in September, according to people familiar with the matter. India’s Gujarat State Petroleum Corp. paid in the mid-$23 range per mmbtu for a September cargo, the people said.
India’s Energy Firms Boost LNG Purchases Amid Government Support for Fertilizers
Indian state-backed energy companies are increasingly purchasing liquefied natural gas (LNG) from the spot market. This surge in buying is driven by government efforts to assist fertilizer producers, who rely heavily on natural gas.
Bharat Petroleum Corp. has recently joined the trend, securing an LNG cargo from the spot market this week. The specific price of this transaction has not been confirmed by Bloomberg.
