Middle East War: Global energy giant Shell plc has increased its natural gas supplies to India amid supply disruptions caused by the West Asia conflict. The company has leveraged its global liquefied natural gas (LNG) portfolio to secure a larger share of spot and long-term demand, including key tenders from the fertiliser sector.

Shell Emerges As Leading Supplier In LNG Procurement By Indian Fertiliser Companies

According to a report by news agency PTI, citing industry sources, Shell emerged as a leading supplier in last month's liquefied natural gas (LNG) procurement by Indian fertiliser companies, securing a supply of 4 trillion British thermal units (TBtu) out of the 6 TBtu tendered.

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This development comes as the government aims to safeguard feedstock availability for urea production amid constrained supplies from the Gulf.

Sources further stated that after LNG supplies from Qatar, India's largest supplier, were disrupted by the West Asia conflict, Shell plc’s India arm stepped in, importing its largest-ever monthly LNG volumes in March.

Shell Becomes India's Largest Supplier Of Imported Gas

Besides serving the fertiliser sector, Shell also supplied gas to other industrial users and retail consumers. In March, the company became India's largest supplier of imported gas.

What Helped Shell Scale Up LNG Supplies To India Amid West Asia Conflict?

Shell plc's ability to ramp up applies is backed by its 5 million tonnes-per-year liquefied natural gas (LNG) import terminal at Hazira in Gujarat, along with associated storage infrastructure. Its position as the world's largest LNG portfolio player also enables it to source cargoes from multiple regions beyond West Asia.

The company also has one of the largest LNG shipping fleets, with over 65 chartered carriers, enabling it to deliver gas when Qatar, India's primary supplier, declared force majeure due to the West Asia conflict.

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The elevated imports by Shell are expected to continue into April, with the company likely to be a major bidder in the 10-12 TBtu gas supply tender that fertiliser companies plan to float mid-month, sources said.

India imports nearly half of its natural gas requirement, which is used as feedstock for fertiliser production, power generation, compressed natural gas (CNG) for transport, piped cooking gas for households, and a range of industrial applications.

(With PTI Inputs)

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