Adani Total Trebles Gas Prices For Industrial Users After Daily 40% Contract Quantity Consumption

The United States–Israel–Iran war is taking a toll on Indian energy companies sooner than expected.

The country’s leading gas distribution company, Adani Total Gas, has almost trebled its prices for supplies to industrial clients after a certain daily consumption limit.

The company has cited the lower availability of gas amid the conflict in the Middle East, according to a report by Reuters.

Starting Tuesday, Adani Total Gas, the joint venture of Adani Group and French oil major TotalEnergies SE, has raised prices on gas consumed over and above the 40 percent daily contract quantity to Rs 119 ($1.30) per standard cubic meter.

Earlier prices were around Rs 40 per standard cubic meter, said the report citing a source.

“Due to recent geo-political developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company was quoted as saying in a customer notice seen by the news agency.

This is the latest impact of the war-induced energy crisis on Indian oil and gas companies.

Gujarat Gas announced on Wednesday that it will be limiting the supply of natural gas to industrial users effective Friday.

Companies like GAIL and Indian Oil Corporation have already reduced gas supplies to industries, according to some reports.

Earlier on Thursday, it was reported that Mangalore Refinery and Petrochemicals has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage. One of its hydrocrackers has also been shut down since Wednesday evening.

MRPL itself had decided to suspend crude exports, declaring force majeure on all upcoming gasoline export cargoes for March and April. The company used to export about 40 percent of its production.

India is the top LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.

Asia is largely dependent on imports to meet its energy needs and a significant amount of it comes from the Middle East.