India’s GAIL Secures Oman LNG Cargo as Supply Disruptions Strain Gas Market

New Delhi– GAIL (India) Limited has purchased a liquefied natural gas cargo from Oman for delivery next week as India seeks to meet domestic gas demand amid supply disruptions linked to tensions in the Middle East, three trade sources said on Wednesday.

Two of the sources said the state-run gas distributor bought the prompt cargo through negotiations with a European trader at a fixed price ranging between $17 and $20 per million British thermal units.

The cargo, loaded aboard the vessel Orion Hugo LNG carrier and chartered by Shell, is expected to arrive in India around March 15, according to shipping analytics firm Kpler.

There was no immediate response from GAIL (India) Limited to a request for comment.

India relies heavily on imported liquefied natural gas to meet domestic demand. The country consumes about 195 million standard cubic metres per day of natural gas, roughly half of which is met through imports.

Before recent disruptions, India was receiving about 60 million standard cubic metres per day of gas from the Middle East, according to industry sources.

Supplies have been affected following the closure of the Strait of Hormuz and the declaration of force majeure by Qatar, India’s largest gas supplier, disrupting shipments from the region.

In response, Indian authorities have begun reallocating gas supplies, diverting fuel from non-priority industries to key sectors in an effort to manage the shortfall and stabilise energy availability.