Following Qatar’s suspension of LNG production and amid fears of supply shortages, Indian companies have reduced natural gas supply to industrial consumers, Reuters reported, citing four industry sources.
India, the world’s fourth-largest LNG importer, relies heavily on Middle Eastern producers for its imports. The country is a leading LNG customer of the Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.
Petronet LNG Limited, India’s top LNG importer, has informed major gas marketing companies including GAIL (India) and others about reduced supplies.
According to a source, GAIL and Indian Oil notified customers late Monday night about supply cuts. Two sources told Reuters that reductions ranged between 10 and 30 percent.
Companies have reportedly curtailed gas supply within contractual limits to avoid penalty payments.
To offset the LNG shortfall, companies including Indian Oil Corporation (IOC), GAIL, and Petronet LNG are planning to issue spot tenders, although spot prices, freight rates, and insurance costs have risen sharply.
As geopolitical tensions continue to intensify, energy markets remain volatile, with oil prices, transportation costs, and gas supplies facing heightened uncertainty.
