Source The economics Times
NEW DELHI — In a major shift for India’s energy landscape, global energy giant Shell plc has dramatically scaled up its liquefied natural gas (LNG) operations in India, stepping into the void left by significant supply disruptions in the Middle East.
By leveraging its massive global portfolio, Shell has not only become India’s largest imported gas supplier for the month of March but has also secured the lion’s share of critical government tenders for the country’s vital fertiliser sector.
Bridging the Gap
The surge in Shell’s activity comes as QatarEnergy, traditionally India’s primary LNG source, declared force majeure following escalating geopolitical tensions in West Asia. The disruption threatened roughly 11.2 million tonnes of India’s annual imports—nearly half of its total requirements.
In response, Shell’s Indian arm recorded its highest-ever monthly import volume in March. The company capitalized on its 5 million tonnes-per-year (MTPA) Hazira terminal in Gujarat and a fleet of over 65 chartered carriers to divert supplies from diverse regions, including:
Oman
Australia
Nigeria
Powering the Fertiliser Sector
Shell’s most significant victory came in the latest bulk procurement round by Indian fertiliser companies. The energy major secured a contract to supply 4 trillion British thermal units (TBtus) out of the total 6 TBtus tendered.
This move was crucial for national food security. Natural gas is the primary feedstock for urea production, and the disruptions had initially squeezed supplies to urea plants down to 70% of their requirement. With Shell’s intervention:
Urea plant supply reached 90% by April 6.
Operational capacity hit 95% by April 9.
City Gas Distribution (CGD) networks saw a 10% increase in availability.
Looking Ahead
Industry analysts suggest that Shell is well-positioned to maintain this momentum. The company is expected to be a dominant bidder in the upcoming 10–12 TBtu gas supply tenders scheduled for mid-April.
While state-run firms like GAIL (India) Limited have also contributed to stabilizing the market, Shell’s ability to pull from global markets outside the immediate conflict zone has provided a critical safety net for the Indian economy.
“Shell’s global reach allowed for a stabilized gas availability much faster than other fuels like LPG,” a government source noted. “This flexibility is proving vital as we navigate ongoing geopolitical uncertainty in the Gulf.”
