Indian natural gas importers are jumping back into the market as prices have dropped almost 40% from their highs. Companies like Bharat Petroleum, GAIL India, and Gujarat State Petroleum have secured liquefied natural gas (LNG) shipments for delivery between April and June for under $16 per million British thermal units, according to Bloomberg.
These purchases come after a period of reduced activity, mainly due to high costs making deals unattractive. Just a month ago, spot LNG prices had soared to around $25 per million Btu.
High prices previously caused some companies to cancel procurement tenders, creating supply shortages. The government had to impose restrictions on LNG supplies to commercial users, impacting businesses like restaurants and hotels.
Currently, about 86% of LPG consumption in India comes from households. Over the last decade, LPG use has jumped 74%. This surge is largely attributed to the government’s initiative to replace hazardous fuels with cleaner options. The Pradhan Mantri Ujjwala Yojana has successfully enrolled 10 crore households, leading to a total of 32.94 crore active domestic LPG users as of March 1, 2025.
What’s interesting is that about 60% of India’s LPG relies on imports, predominantly sourced from the Gulf region before the ongoing conflict disrupted supplies. Both sides of the conflict have targeted energy sites, including Qatar’s Ras refinery, which exports significant amounts of natural gas.
Experts now worry about prolonged energy supply issues. According to energy analyst Dr. Aman Gupta, “Restoring normal supply levels could take months.” He believes that the damage inflicted during the war complicates the situation further.
This backdrop shows how geopolitics can heavily influence energy markets. As we keep an eye on the crisis, Indian businesses are hoping for quicker resolutions to stabilize prices and ensure steady supplies.
Source link
India LNG imports spot prices,LNG price drop India energy market,Bharat Petroleum GAIL LNG purchase,global LNG prices war impact,India LPG consumption import dependence
