India Increases LNG Imports as Asian Prices Reach Multi-Year Highs

India’s LNG imports increased in April while most other Asian buyers reduced purchases. The rise occurred after Qatar halted natural gas production on March 2 and the Strait of Hormuz closed, cutting roughly 5.5 million to 6 million tonnes of monthly regional supply.

Asian LNG imports fell to 18.8 million tonnes in April, the lowest level since 2020. Japan reduced its purchases by 1.5 million tonnes per month and South Korea cut imports by 1 million tonnes per month between February and April.

JKM prices rose from $10.4 per million British thermal units before the supply cuts to $25.3 per million British thermal units by late March. India turned to cargoes from the United States, Nigeria, and Oman to replace lost Qatari volumes. Heat-driven electricity demand created evening shortages that LNG helped meet.

Daytime solar generation left surplus power, while nighttime shortfalls increased the value of gas-fired generation despite higher prices. com reported that India’s pattern diverged from other Asian countries that shifted toward coal, nuclear power, and conservation measures.