India LNG costs surge as supply risks deepen
pre-market2 sources ↓machine-written, see hownot a recommendation
- GAIL close
- ₹166.91
- On the day
- +0.16%
- Futures OI, long build-up
- +3.1%
- Put-call ratio
- 0.85
- Max pain
- ₹175.00
India’s LNG market faced a sharper demand and supply shock than previously reported as the West Asia conflict and Strait of Hormuz closure disrupted Qatari and UAE shipments. India’s natural gas demand fell by 1.5 million tonnes, according to Wood Mackenzie’s latest analysis, while South Asian LNG demand is now expected to decline by around 6 million tonnes in 2026 instead of growing by the previously projected 2.7 million tonnes, or 7%. ⚡
LNG tender price $26.4
India’s LNG procurement costs rose sharply in September, with tender award prices reaching $26.4 per mmBtu from $16.8–$18.8 per mmBtu between March and June, according to the earlier Wood Mackenzie analysis. The supply shock cut off LNG flows from Qatar and the UAE, while spot prices rose sharply relative to contracted LNG prices. Bangladesh saw gas demand fall by more than 3 million tonnes, highlighting the scale of the regional disruption.
The supply-prioritisation policy protected city gas distribution networks but reduced deliveries to fertiliser plants, refineries and industrial users during March and April. Higher imported-gas costs increase pressure on fertiliser subsidies and raise input expenses for gas-dependent industries. The latest demand figures also show that expensive and uncertain supply is reducing consumption rather than simply raising procurement costs across the energy chain. 💼
OI Charts data for 12 Oct 2026 showed a mixed derivatives read across energy-linked companies. GAIL closed at ₹166.91, up 0.2% on the day but down 4.3% over 20 sessions. Its futures open interest rose 3.1% with a long build-up, while the put-call ratio was 0.85, max pain was ₹175 and the largest call open interest was at ₹175 for the 27 Oct expiry.
NTPC closed at ₹310, down 0.6% for the session and 7.5% over 20 sessions. Futures open interest increased 0.6% with a short build-up, while the put-call ratio was 0.49. Max pain stood at ₹320 and the largest call open interest was at ₹325. Traders will watch LNG tender prices, the reopening and reliability of Hormuz shipping, further allocation changes and the 27 Oct expiry levels. 📉
Source: Business Today, 12 Oct 2026; BusinessLine, 14 Oct 2026
Not investment advice. For informational purposes only.