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Shell Becomes India's Top Gas Supplier Amidst Global Tensions
12 Apr
Summary
- Shell significantly increased LNG supplies to India in March.
- India imports about half its natural gas, crucial for fertilisers.
- West Asia conflict disrupted QatarEnergy's supplies to India.
Global energy firm Shell plc significantly boosted its liquefied natural gas (LNG) supplies to India in March, becoming the country's largest imported gas supplier. This move came as a conflict in West Asia disrupted supplies from India's primary LNG provider, QatarEnergy. India relies on imports for approximately half of its natural gas, a critical component for fertiliser production, power generation, and household cooking gas.
Shell leveraged its extensive global LNG portfolio and shipping capabilities to secure a substantial volume in a recent tender by Indian fertiliser companies. This ensured vital feedstock for urea production, a key sector that faced potential shortages. The company's Hazira import terminal in Gujarat and its substantial fleet of chartered carriers facilitated quicker delivery of cargoes.
The disruption from QatarEnergy, which declared force majeure, impacted about 11.2 million tonnes of India's LNG imports. While state-run firms sought alternative suppliers, shipping capacity remained a constraint. Shell's ability to source from diverse regions beyond West Asia, including Oman, Australia, and Nigeria, provided a crucial advantage.
These increased imports by Shell, along with contributions from other public sector undertakings, helped stabilize India's gas availability. Initial supply curtailments for some industrial users were gradually restored. Supplies to operating urea plants saw a progressive ramp-up, reaching nearly 95% of requirements by early April. Other industrial and commercial sectors also saw increased gas availability.
