State-run GAIL has bought a prompt liquefied natural gas (LNG) cargo from Oman as India scrambles to shore up supplies following disruptions to shipments through the Strait of Hormuz. Trade sources said the cargo, loaded on the Shell-chartered vessel Orion Hugo, was procured from a European trader via a negotiated deal at a fixed price of around 17–20 dollars per mmBtu for delivery next week, with arrival expected around March 15.
India meets nearly half of its daily gas demand of about 195 mmscmd through imports, and had been receiving roughly 60 mmscmd from the Middle East before flows were hit by the Hormuz closure and a force majeure declaration by top supplier Qatar. The government has begun reallocating gas away from non-priority users to essential sectors to manage the shortfall triggered by the Iran conflict.
Under an emergency allocation plan invoked via a gazette notification under the Essential Commodities Act, authorities will first fully meet requirements for LPG production, CNG for transport and piped natural gas for households. Remaining volumes will cover around 80 percent of demand from commercial users and about 70 percent for fertiliser plants, with other industries receiving gas only after these segments are supplied.
Officials added that domestic LPG output from refineries is already near maximum, and plants have been asked to divert feedstock from petrochemical streams to cooking gas wherever possible. The revised priority framework aims to ensure stable fuel availability for households, transport and critical services while the Middle East conflict continues to roil global LNG trade.
