India has accelerated its purchases of liquefied natural gas (LNG) from the spot market to compensate for supply disruptions from the Middle East and meet rising demand from fertilizer plants, power generators, and households [1, 2]. At least five state-owned companies, including Indian Oil Corp and Gujarat State Petroleum Corp, have issued tenders or acquired shipments for delivery in June and July [2].
The increased imports aim to replace lost shipments from Qatar and the UAE, which together accounted for 57% of India's LNG imports before the conflict disrupted supplies [2]. India is now buying nearly six LNG cargoes per month from the spot market to supply fertilizer production, a sharp rise from less than one cargo per month before the conflict [2].
Higher spot purchases respond to fertilizer producers boosting output ahead of the planting season and hotter summer weather increasing gas-fired power demand. Gas-fired power generation surged to 651 million units in the first week of June, compared with 383 million units in the same period in May 2026 [2].
Spot LNG prices have risen to around $18 to $19 per million British thermal units (mmBtu), compared with about $13 per mmBtu under long-term contracts, reflecting tighter market conditions [2].
India’s push to secure spot LNG cargoes continues through at least July as it works to stabilize supplies amid ongoing disruption in its major Gulf sources [2].
