India’s LNG costs surge to $26.4 per mmBtu despite efforts to protect supplies - BusinessToday

LNG tender prices rose from $16.8–$18.8 per mmBtu between March and June to $26.4 in September, as the West Asia conflict disrupted supplies from Qatar and the UAE and restricted shipments through the Strait of Hormuz.

India’s efforts to protect gas supplies to households and transport users have come at a higher cost, with liquefied natural gas (LNG) tender prices rising to $26.4 per million British thermal units (mmBtu) in September, according to consultancy Wood Mackenzie. LNG tender award prices ranged between $16.8 and $18.8 per mmBtu between March and June before climbing sharply in September. The increase comes as the conflict in West Asia disrupts supplies from Qatar and the United Arab Emirates, while the closure of the Strait of Hormuz restricts shipments. India has responded by prioritising supplies to city gas distribution networks while cutting deliveries to fertiliser plants, refineries and industrial users during March and April. The approach helped protect supplies for priority consumers, but the higher cost of imported gas has increased pressure on the energy sector. The price rise could have implications for fertiliser subsidies, industrial production costs and the price of ...