Bharat Petroleum, an Indian energy company, is set to announce the results of its tender for the procurement of 4 million tons of liquefied natural gas (LNG) over a 10-year period. The tender incorporates a hybrid pricing mechanism designed to balance market dynamics and pricing stability.
The company’s approach aims to secure long-term LNG supplies while managing price risks through a combination of pricing formulas. The outcome of this tender will influence Bharat Petroleum’s LNG sourcing strategy moving forward.
**Why this matters**
This tender reflects a growing trend among energy buyers to adopt hybrid pricing models that combine elements of spot and indexed pricing. Such mechanisms can provide greater flexibility and cost predictability in volatile global LNG markets. For India, securing stable LNG supplies is critical to meeting rising energy demand and supporting economic growth.