India pays highest LNG prices since 2022 amid Iran conflict

India's state-run energy companies are buying liquefied natural gas at the highest prices seen since 2022, as the US-Iran conflict disrupts shipping through the Strait of Hormuz. Gail India paid over $23 per million British thermal units for a September delivery, while Gujarat State Petroleum Corp paid in the mid-$23 range per mmbtu, Bloomberg reported. Bharat Petroleum also agreed to buy a spot cargo this week.

NDTV Profit and the Times of India report that the price surge follows Iranian attacks in March that damaged Qatar's massive export terminal, and ongoing marine traffic restrictions in the Strait of Hormuz. Indian buyers are also competing with European buyers where gas prices hit a five-month high. The Ministry of Petroleum and Natural Gas told Parliament that India has diversified its LNG sourcing to 15 countries from six earlier, and crude oil to 41 countries from 27, to reduce vulnerability to any single route.