Gail India Ltd., a state-run gas company, recently paid more than $23 per million British thermal units for a cargo scheduled for delivery in September, according to people familiar with the matter. Gujarat State Petroleum Corp. paid in the mid-$23 range per mmbtu for a September cargo, the people said.
The cargoes are the most expensive LNG imports into India since 2022, according to the people, who asked not to be named because the deals are not public.
State-backed energy companies in India are turning to the LNG spot market and bidding up prices as the government pushes to support fertilizer producers, which use natural gas.
India has typically bought LNG through long-term contracts from Qatar, the world’s second-largest supplier of the fuel. However, Qatar’s massive export terminal was damaged by Iranian attacks in March, while ships are still largely blocked from passing through the Strait of Hormuz.
India is also competing with LNG buyers in Europe, where gas prices have soared to a five-month high.
A third Indian buyer, Bharat Petroleum Corp., also agreed to buy an LNG cargo from the spot market this week, according to the people. Bloomberg could not confirm the price.
The purchases highlight the sharp pressure on Indian energy companies as disrupted supplies and stronger competition push spot LNG prices to levels not seen for Indian imports since 2022.
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