Adani Total raises LNG prices for industrial customers. Find out why
New Delhi, Mar 6: As the war in the Gulf and West Asia rages causing disruptions in energy flows from the region, Adani Total Gas has raised prices of the fuel for its industrial customers.
According to Adani Total Gas, the price of gas supplied to industrial users will go up when their consumption goes beyond the contracted daily limit.
The new rate is Rs 119 per standard cubic metre for additional gas used beyond 40% of the daily contract quantity, according to the decision effective from March 3.
The earlier cost of such supplies was around Rs 40 per standard cubic metre.
PRICE HIKE LINKED TO WEST ASIA CONFLICT:
The company said the price hike was linked to reduced availability of liquefied natural gas (LNG) due to the “geo-political developments” in the Middle East.
The company, in its notice to customers, said it has received reduced upstream gas supplies because of the disruption.
“Due to recent geo-political developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company said.
ENERGY FLOWS AFFECTED:
Production and supplies of energy, including LNG, have been affected due to the raging war in West Asia beginning February 28.
The war was triggered by the attacks by the US and Israel on Iran, which resulted in the assassination of its top leader Ayatollah Ali Khamenei.
Iran, in retaliation, began targeting US military bases and energy facilities in the Gulf countries.
Among the oil facilities hit and damaged badly were the refineries of Aramco in Saudi Arabia, the world’s largest oil producer.
The LNG facility in Qatar, a massive producer of gas, was also hit and damaged.
As a result, these facilities have been shut down, impacting the production.
In addition to this, Iran has threatened to target ships transiting the Strait of Hormuz, which is a major maritime gateway for the flow of energy globally.
This has severely impacted the movement of energy through this route which generally witnesses transit of around one-fifth of the global oil as well as large quantities of gas supplies.
ABOUT ADANI TOTAL GAS:
Adani Total Gas is a joint venture between the Adani Group and French energy major Total Energies.
The company supplies piped natural gas and compressed natural gas across several Indian cities.
