However, gas allocation for priority sectors, such as domestic piped natural gas (PNG) and compressed natural gas (CNG), would not be curtailed, they added.
“India consumes 195 million standard cubic metres per day (mmscmd) of natural gas. Of this, 60 mmscmd is not available due to the QatarEnergy production halt. If this continues, we may re-prioritise sectors within the country; industrial usage may be impacted,” said a top government official.
QatarEnergy has halted production of liquefied natural gas (LNG) amid attacks on its facilities as tensions rise in West Asia. Qatar is India’s largest LNG supplier. Industrial players have been informed in advance and asked to look for alternate fuels such as liquefied petroleum gas (LPG), fuel oil, among other options, in case of a cut, said a senior executive from a gas company.
Following the production halt, India’s largest LNG importer, Petronet LNG Ltd (PLL), on March 3 issued a force majeure notice to QatarEnergy and its offtakers, including GAIL (India), Indian Oil Corporation (IOCL), and Bharat Petroleum Corporation (BPCL).
On Thursday, GAIL said it was assessing potential supply curtailments that may need to be imposed on its downstream customers, as allocation of LNG quantities under PLL’s contract with QatarEnergy has been reduced to zero by PLL since March 4. GAIL’s LNG supplies from other sources and suppliers are currently unaffected, it said in an exchange filing.
Due to energy supplies from West Asia, Mangalore Refinery and Petrochemicals has suspended refined fuel exports and shut some units at its refinery.
Adani Total Gas, the city gas joint venture of Adani Group and France's TotalEnergies, has nearly tripled gas prices for large industrial consumers after disruptions to LNG supplies, sources said.
As the war between the US and Israel and Iran entered the sixth day on March 5, critical energy infrastructure has come under attack in the Gulf region, including the Strait of Hormuz, a narrow sea passage that supports 30 per cent of global crude oil trade and significant volumes of LNG and LPG.
US insurance for Hormuz passage
India is in talks with US authorities for insurance cover for the safe passage of cargoes through the Strait of Hormuz, said the government official.
US President Donald Trump said the US government would provide “discounted risk insurance” for ships transiting the Strait of Hormuz amid Iranian attacks on vessels passing through the key shipping route.
“We are in touch with the US authorities’ Development Finance Corporation for insurance of ships. At the same time, we are also talking to major companies and traders, including Vitol, Trafigura, ADNOC, and TotalEnergies for additional energy supplies,” said the official.
India is in a “comfortable position” to secure energy supply for consumers, mainly on account of its diversification strategy. The country currently procures crude oil from 40 sources, the official added.
India is a major energy importer, relying on imports for over 90 per cent of its crude oil requirements and about 50 per cent each for LNG and LPG.
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India in talks with US to secure marine cover for vessels shipping oil from West Asia
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Gas allocation for domestic piped natural gas won’t be curtailed
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GAIL weighs supply cuts to gas customers after Petronet LNG force majeure
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Mangalore Refinery and Petrochemicals shuts some units at its refinery
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Adani Total Gas nearly triples gas prices for large industrial consumers
 "GAS FIRMS")
