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Market Chatter: India LNG Imports Approach Six-Year High as Fertilizer Demand Drives Buying

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India's liquefied natural gas imports surged in August to their highest level in nearly six years, despite high spot prices, according to a Bloomberg report, citing ship tracking data.

This was attributed to higher demand for fertilizers and because of fuel distributors seeking to replace shipments that had been disrupted by conflict in the Middle East.

Deliveries to India have surged over 40% year-over-year to 2.6 million tons, the highest since October 2020. This has confounded markets, since India often reduces spot purchases when prices rise, as it did in the early days of the US-Iran war.

Most of these purchases have been linked to fertilizer production, which is supported by government subsidies.

This is expected to weigh on European markets as the region struggles to refill gas inventories ahead of the upcoming winter.

The Gas Authority of India Limited, a leading public sector natural gas company, did not immediately respond to' request for comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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