India’s state-run gas major GAIL (India) Limited has purchased a prompt liquefied natural gas (LNG) cargo from Oman as the country moves to secure supplies amid disruptions to regional energy shipments, according to trade sources.
The cargo, sourced from an Omani supplier through negotiations with a European trader, was reportedly purchased at a fixed price ranging between $17 and $20 per million British thermal units (mmBtu), two of the three sources said.
Shipping data from analytics firm Kpler shows that the cargo was loaded on the vessel Orion Hugo LNG carrier, which has been chartered by Shell. The tanker is expected to arrive in India around March 15.
India currently meets nearly half of its natural gas demand—about 195 million standard cubic metres per day (mmscmd)—through imports. Prior to the recent disruptions, roughly 60 mmscmd of gas supplies were sourced from the Middle East.
However, supplies have been affected by the closure of the Strait of Hormuz and the declaration of force majeure by QatarEnergy, India’s largest LNG supplier.
In response to the supply squeeze, the Indian government has begun rationalising gas distribution, diverting fuel from non-priority sectors to critical industries to ensure continuity of essential operations.
Officials from GAIL did not immediately respond to requests for comment.