Indian Energy Firms Pay Highest LNG Prices Since 2022

Indian energy companies are paying the highest prices for liquefied natural gas since 2022 as supply disruptions from the war in Iran destabilize the market. The Government of India is driving this increased procurement to ensure domestic fertilizer producers have sufficient feedstock.

State-run Gail India Ltd. and Gujarat State Petroleum Corp. both paid over $23 per million British thermal units for September cargoes. These price surges follow Iranian attacks in March that damaged a Qatari export terminal and the ongoing blockage of the Strait of Hormuz. These disruptions have forced Indian buyers to rely on the volatile spot market.

Competition has intensified as European gas prices hit a five-month high, pitting Indian firms against European buyers for limited supplies. Bharat Petroleum Corp. also secured a spot market cargo this week, although the company did not disclose the purchase price.