India just bought its most expensive LNG in years
India has recently acquired its most costly liquefied natural gas (LNG) in years due to the ongoing Iran war disrupting fuel supplies. State-run gas company Gail India Ltd. paid over $23 per million British thermal units for a shipment scheduled for September, according to sources familiar with the matter. Gujarat State Petroleum Corp. also paid in the mid-$23 range per mmbtu for a September delivery, the sources added.
These transactions mark the highest LNG imports into India since 2022, sources who requested anonymity due to the non-public nature of the deals stated.
State-backed energy companies in India are increasingly turning to the spot market and competing fiercely, as the government supports fertilizer producers reliant on natural gas. India typically procured LNG through long-term contracts with Qatar, the world's second-largest supplier. However, Qatar's major export terminal was damaged by Iranian attacks in March, leaving many ships blocked from traversing the Strait of Hormuz.
Furthermore, India is grappling with competing LNG buyers in Europe, where gas prices have skyrocketed to a five-month high. Another Indian buyer, Bharat Petroleum Corp., also committed to purchasing an LNG cargo from the spot market this week, though Bloomberg could not confirm the exact price.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
