Global energy major Shell plc has ramped up natural gas supplies to India in the wake of disruptions triggered by the West Asia conflict, leveraging its global liquefied natural gas (LNG) portfolio to capture a larger share of spot and term demand, including key fertiliser sector tenders.

Industry sources said Shell emerged as a leading supplier in last month's bulk LNG procurement by Indian fertiliser companies, securing a supply of 4 trillion British thermal units out of 6 TBtus volumes tendered, as the government moved to ensure feedstock availability for urea production amid constrained supplies from the Gulf.

With supplies from India's largest LNG supplier in Qatar disrupted by the West Asia conflict, Shell plc's India arm stepped in, importing its largest-ever monthly LNG volumes in March, they said.

Besides fertiliser, Shell India also supplied gas to other industrial users and retailers. In March, it became India's largest supplier of imported gas.

Shell's ability to step up supplies is backed by its 5 million tonnes-per-year LNG import terminal at Hazira in Gujarat and associated storage infrastructure, along with its position as the world's largest LNG portfolio player, allowing it to source cargoes from multiple regions beyond West Asia to meet demand.

Sources said the company leveraged its LNG portfolio in countries ranging from Oman to Australia and Nigeria. It also operates one of the largest LNG shipping fleets (over 65 chartered carriers), helping deliver gas when India's main supplier declared force majeure.

India imports roughly half of its natural gas requirement, which is used as feedstock for fertiliser production, power generation, CNG for transport, piped cooking gas for households and across a range of industrial applications.

As much as 45-50 per cent of LNG imports come from Qatar under long-term contracts. These supplies stopped after Iran's sweeping retaliation to US and Israeli strikes targeted neighbouring countries that housed US troops.

Force majeure declared by QatarEnergy disrupted about 11.2 million tonnes of India's roughly 27 million tonnes of LNG imports, even as state-run firms such as GAIL (India) Limited continued sourcing cargoes from alternative suppliers, including the United States and Russia.

However, a key constraint remained shipping capacity, with a limited number of LNG carriers available to transport cargoes from distant sources, such as the US, where voyages can take up to 45 days.

Shell, sources said, was relatively insulated from such constraints due to its access to a global LNG portfolio, as well as its own shipping fleet, enabling quicker diversion of cargoes.

Supplies brought in by Shell, along with limited volumes imported by GAIL (India) Limited and other state-run firms, complemented domestic production of about 92 million standard cubic metres per day, helping stabilise gas availability more quickly than LPG, following the disruption in early March.

Initially, gas supplies were curtailed for some industrial users to prioritise fertiliser plants and city gas distribution, before gradually restoring allocations as alternative cargoes were secured. Industrial consumers faced supply cuts of up to 40 per cent.

With additional imports in March, supplies to operating urea plants were progressively ramped up - from about 70 per cent of the requirement to nearly 90 per cent from April 6 and around 95 per cent from April 9.

Starting April 6, gas availability to other industrial and commercial sectors, including City Gas Distribution networks, was also increased by an additional 10 per cent.

Sources said elevated imports by Shell are likely to continue in April as well. It is likely to be a major bidder in the 10-12 TBtu of gas supply tender that fertiliser firms are planning to bring in mid-April.

Published on April 12, 2026