Shell raises LNG flows to India as Gulf outages hit supply

UK-based energy major Shell has stepped up LNG deliveries to India and captured a large share of recent fertilizer procurement orders amid the Gulf crunch, PTI reports. The company supplied 4 tn British thermal units (tBtu) of natural gas out of the 6 tBtu procured by Indian fertilizer firms in recent tenders, as authorities prioritize feedstock for urea production.

Why it matters: The shift follows interruptions to Qatari supplies — which typically account for 45-50% of India’s LNG imports — after a force majeure declaration affected around 11.2 mn tonnes (mtpa) of cargo out of India’s 27 mtpa intake.

Market position: Shell’s India arm imported its largest-ever monthly LNG volumes in March and was a leading supplier of imported gas during the period, supplying fertilizer plants and industrial users. The company sourced LNG cargoes from multiple markets — including Oman, Australia, and Nigeria — allowing it to redirect supply to India amid disruptions.

Shell seems to be weathering the regional energy storm better than its peers. The global energy giant is relatively insulated from the logistics constraints currently strangling the Strait of Hormuz thanks to its massive global LNG portfolio and its own dedicated shipping fleet, the news outlet reports, citing company sources. This vertical integration has allowed the company to pivot and divert cargoes with a speed that state-run competitors simply cannot match, Hindu Businessline reports.

Shell’s supplies are proving to be critical in easing domestic shortages through this month. Gas supply to urea plants increased to 95% of the required amount from about 70% last week. Industrial consumers, which had seen supply cuts of up to 40%, have received incremental allocations as availability improves.

What’s next: Shell is expected to remain active in the market, with further participation likely in mid-April fertilizer sector tenders involving an additional 12 tBtu of gas.