Rising tensions in the Middle East are beginning to affect energy supplies across the world, and Indian companies are starting to feel the impact. Adani Total Gas has now increased gas prices for industrial customers, pointing to supply disruptions linked to the ongoing conflict in the region, reported Reuters.
PRICE HIKE FOR INDUSTRIAL CUSTOMERS
Adani Total Gas said it has raised the price of gas supplied to industrial users when their consumption goes beyond the contracted daily limit. According to a notice sent to customers, the new rate is Rs 119 per standard cubic metre for additional gas used beyond 40% of the daily contract quantity.
Earlier, the price for such supplies was around Rs 40 per standard cubic metre, according to a source familiar with the matter. The company introduced the revised price from Tuesday.
SUPPLY DISRUPTIONS LINKED TO MIDDLE EAST CONFLICT
The company said the increase is linked to lower availability of liquefied natural gas (LNG) due to geopolitical tensions in the Middle East.
In its customer notice, Adani Total Gas 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.
STRAIT OF HORMUZ DISRUPTION AFFECTING ENERGY FLOWS
The supply challenges come after attacks on Iran and retaliatory strikes by Tehran, which have disrupted shipping through the Strait of Hormuz. The narrow waterway between Iran and Oman is one of the world’s most important energy routes.
Nearly one-fifth of the global oil supply passes through this route, along with large volumes of liquefied natural gas. However, shipping traffic has slowed sharply after some vessels operating in the area were reportedly hit.
JOINT VENTURE BETWEEN ADANI AND TOTALENERGIES
Adani Total Gas is a joint venture between the Adani Group and French energy major TotalEnergies. The company supplies piped natural gas and compressed natural gas across several Indian cities.
The company did not immediately respond to a request for comment on the price increase.
