Shell Ramps Up LNG Supplies to India

Global energy major Shell plc has significantly increased natural gas supplies to India following disruptions triggered by the West Asia conflict, leveraging its global liquefied natural gas (LNG) portfolio to bridge supply gaps and capture rising demand.

Industry sources indicated that Shell emerged as a key supplier in recent bulk LNG tenders floated by Indian fertilizer companies, securing 4 trillion British thermal units (TBtus) out of the 6 TBtus tendered. The move came as the government prioritized feedstock availability for urea production amid constrained supplies from the Gulf.

The disruption was primarily driven by supply interruptions from QatarEnergy, India’s largest LNG supplier, which declared force majeure following escalating geopolitical tensions in the region. The halt impacted nearly 11.2 million tonnes of India’s annual LNG imports of around 27 million tonnes.

In response, Shell’s India operations ramped up imports, recording their highest-ever monthly LNG volumes in March. The company also supplied gas to a wide range of users beyond fertilizers, including industrial consumers and city gas distributors, emerging as India’s largest supplier of imported gas during the month.

Shell’s ability to scale up supplies has been supported by its diversified global LNG sourcing network, spanning regions such as Oman, Australia and Nigeria, along with its extensive shipping capabilities. The company operates a fleet of over 65 LNG carriers, enabling it to redirect cargoes swiftly at a time when shipping capacity remains a critical constraint for longer-haul supplies from markets such as the United States.

India, which imports roughly half of its natural gas requirements, faced significant supply challenges as disruptions in West Asia coincided with rising domestic demand across fertilizers, power, transport and industrial sectors. Initially, supplies to industrial users were curtailed by up to 40 per cent to prioritize fertilizer plants and city gas distribution networks.

With additional cargoes secured, availability has steadily improved. Supplies to urea plants rose from around 70 per cent of requirements to nearly 95 per cent by April 9, while allocations to other sectors, including city gas distribution, have also been progressively restored.

State-run firms such as GAIL (India) supplemented imports from alternative sources, including the US and Russia, but logistical constraints and longer transit times limited their ability to respond as quickly as global portfolio players like Shell.

Sources suggest that elevated LNG imports by Shell are likely to continue through April, with the company expected to participate actively in upcoming fertilizer sector tenders of 10–12 TBtus, as India seeks to stabilize energy supplies amid ongoing geopolitical uncertainty.