Spot LNG prices rise sharply

Govt makes ad hoc provision of ₹600 crore for fertiliser plants

- SANDIP DAS

SPOT PRICES OF LNG, a key feedstock for urea production, rose sharply to $19 per metric million Btu (MMBtu) in the latest purchase by the state-owned GAIL from an average of $11-12 MMBtu in April-February this financial year, sources said.

The spot purchase of LNG was initiated on Tuesday after the virtual blockade of the Strait of Hormuz, a key import route from the Gulf countries, led to concerns about gas supplies.

Sources said the government has made a provision of over ₹600 crore for augmenting LNG supplies to fertiliser plants from the spot market for the time being.