Shell Boosts LNG Supply to India, Wins Fertiliser Tenders

Global energy major Shell plc has stepped up its liquefied natural gas (LNG) supplies to India energy market, taking advantage of Gulf supply disruptions to secure major fertiliser sector deals.

The increase comes at a time when geopolitical tensions in West Asia have disrupted LNG shipments, especially from Qatar—one of India’s key gas suppliers. These disruptions created a natural gas supply gap, forcing Indian fertiliser companies and industrial users to look for alternative sources to keep operations running smoothly.

Shell used its strong global LNG network to meet this sudden demand. In March, the company emerged as India’s largest LNG supplier, delivering both spot and long-term cargoes to fertiliser manufacturers, city gas distributors, and other industrial consumers.

According to industry sources, Shell secured a significant share of recent LNG tenders issued by Indian fertiliser firms. In one major deal, the company is said to have supplied nearly two-thirds of the total volume required. This ensured a steady supply of natural gas, a critical input for urea production, strengthening the fertiliser supply chain.

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The fertiliser sector is particularly sensitive to gas shortages, as natural gas is essential for manufacturing urea. Any disruption can directly impact production and, in turn, affect the agricultural cycle—especially ahead of the important kharif sowing season.

Shell’s ability to respond quickly is backed by its diversified sourcing strategy and infrastructure. Its LNG terminal in Hazira, Gujarat, allows the company to import gas from multiple regions, supporting energy security in India and reducing reliance on any single route or supplier.

The broader supply disruption is linked to rising tensions around key shipping routes like the Strait of Hormuz, a crucial corridor for global energy trade. Instability here often impacts global LNG market trends and pricing.

As India works to secure its energy needs, Shell’s expanded role highlights how global suppliers are adapting to shifting geopolitical conditions, ensuring stability in essential sectors like fertilisers and agriculture while navigating geopolitical energy risks.