India cuts industrial gas supply as Qatar halts LNG production
Indian companies have reduced natural gas supplies to industries, anticipating tighter imports from the Middle East after Qatar, a top LNG producer, temporarily halted production, according to four industry sources.
Qatar stopped liquefied natural gas (LNG) output on Monday, following Iranian strikes in the Gulf in retaliation for recent Israeli and U.S. attacks. These incidents have also disrupted oil and gas shipments through the Strait of Hormuz, pushing global energy prices and shipping costs higher, News.Az reports, citing Reuters.
India, the world’s fourth-largest LNG buyer, relies heavily on Middle Eastern supplies. Leading LNG importer Petronet LNG Ltd has informed GAIL (India) Ltd and other companies of reduced shipments, two sources said. India is the largest LNG client of Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.
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The supply reductions, reported late Monday by GAIL and Indian Oil Corp (IOC), range from 10% to 30%. Companies have set minimum lifting quantities to avoid contractual penalties, the sources said.
To cover the LNG shortfall, Indian firms, including IOC, GAIL, and Petronet LNG, plan to issue spot tenders, despite soaring spot, freight, and insurance costs.
By Aysel Mammadzada
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