India’s liquefied natural gas importers have accelerated purchases from the spot market, taking advantage of a recent dip in prices, as the country looks to ease a supply crunch triggered by the war in West Asia.
Bharat Petroleum Corp., Gail India Ltd. and Gujarat State Petroleum Corp. bought shipments for delivery between April and June at below $16 per million British thermal units, according to traders with knowledge of the matter. The LNG supplies were purchased via tenders that closed on April 15, said the traders, who asked not to be named because they’re not authorized to speak to media.
The purchases mark a turnaround after Indian buyers had earlier limited spot purchases and canceled tenders because offers were too expensive.
The effective closure of the Strait of Hormuz, and attacks on the world’s largest LNG export plant in Qatar, have disrupted a fifth of the world’s supply of the super-chilled fuel. India is among the hardest-hit consumers, with LNG deliveries down 14% compared with the same time last year on a 30-day moving average, ship data shows.
The latest move comes after spot LNG prices fell to the lowest level in over a month. Prices more than doubled after the war began, rising to roughly $25 per million Btu and forcing Indian buyers to curb purchases and reduce supplies to industrial customers. Still, prices remain about 50% higher than pre-war levels.
Indian Oil Corp. canceled a purchase tender that was scheduled to close on April 15, traders said.
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