Adani Total Gas Ltd. has tripled LNG prices for industrial consumers exceeding their daily quota, in what is seen as a direct fallout of an escalating Iran war choking India’s energy supply.
The city gas distributor—a joint venture between billionaire Gautam Adani’s conglomerate and France’s TotalEnergies SE—raised LNG rates for volumes consumed beyond 40% of daily contracted limits to ₹120 per standard cubic metre from ₹40, Bloomberg reported citing sources.
The price revision took effect at 6:00 am on Wednesday. A spokesperson for Adani Total Gas did not immediately respond to Bloomberg’s request for comment.
Qatari Supply Crunch
The price surge underscores India’s acute vulnerability to maritime disruptions. Domestic consumers are facing a severe supply squeeze after Qatar’s Ras Laffan plant—the world’s largest LNG terminal—halted operations following an Iranian drone strike. The outage is particularly bruising for New Delhi, which relies on imports for half of its natural gas needs, with Qatar accounting for 50% of those overseas shipments.
Industrial and commercial units represent roughly 30% of Adani Total’s demand profile. Unlike the residential segment, which receives priority allocation of cheaper domestic gas, this bulk demand is met entirely through expensive LNG imports purchased on the spot market.
Force Majeure Risks
The crisis is rippling through India’s energy infrastructure. Peers including Petronet LNG Ltd. and Gujarat Gas Ltd. have already invoked force majeure clauses to limit deliveries, citing an inability to secure scheduled shipments.
Adani Total currently operates across 53 geographical areas, reaching roughly 14% of India’s population through its direct footprint and a separate venture with Indian Oil Corp. Ltd. The sudden cost escalation is expected to pressure margins for energy-intensive sectors, including ceramics, glass, and chemicals, which rely on the company’s network for steady fuel.
