India’s LNG Imports Hit $23/mmbtu: Highest Since 2022
By Market Desk
India faces its most expensive LNG imports since 2022, with September deliveries priced over $23/mmbtu due to Iran war disruptions and increased competition.
Indian energy companies are currently purchasing liquefied natural gas (LNG) on the spot market for September deliveries at prices exceeding $23 per million British thermal units (mmbtu). This acquisition represents the most expensive LNG imports for India since 2022.
Key Spot Market Figures
- LNG Spot Price for September: Over $23/mmbtu
- Highest Price Since: 2022
The significant surge in prices is directly attributed to disruptions stemming from the ongoing Iran war. These geopolitical events have impacted critical energy infrastructure and shipping routes.
Market Drivers and Competition
- Damage at Qatar’s export terminal in March due to the conflict.
- Restrictions imposed on shipping through the strategic Strait of Hormuz.
- Increased competition from European buyers for available LNG cargoes.
State-run entities, including Gail India Ltd. and Gujarat State Petroleum Corp., have been among those paying these elevated rates to secure their energy needs. Bharat Petroleum Corp. also procured an LNG cargo from the spot market, though its specific price was not disclosed.
India’s reliance on the spot market is partly driven by the government’s initiative to support domestic fertilizer producers, which are heavily dependent on natural gas as a key input. This necessity contributes to the country’s exposure to volatile international spot prices.