Daijiworld Media Network - Mumbai

Mumbai, Mar 5: Rising tensions in the Middle East are beginning to impact global energy supplies, and Indian companies are now feeling the effect. Adani Total Gas has increased gas prices for industrial customers, citing supply disruptions linked to the ongoing regional conflict, reported Reuters.

Adani Total Gas said it has raised the price of gas supplied to industrial users when consumption exceeds the contracted daily limit. According to a notice to customers, the new rate is Rs 119 per standard cubic metre for additional gas used beyond 40% of the daily contract quantity. Previously, such supplies were priced at around Rs 40 per standard cubic metre. The revised rates came into effect from Tuesday.

The company attributed the increase to lower availability of liquefied natural gas (LNG) due to geopolitical tensions. “Due to recent geo-political developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the notice stated.

The supply challenges follow attacks on Iran and retaliatory strikes by Tehran, which have disrupted shipping through the Strait of Hormuz, the narrow waterway between Iran and Oman. Nearly one-fifth of the world’s oil supply and significant volumes of LNG pass through this route. Shipping traffic has slowed sharply after reports of vessels being hit in the area.

Adani Total Gas, a joint venture between the Adani Group and French energy major TotalEnergies, supplies piped natural gas and compressed natural gas across several Indian cities. The company did not immediately respond to requests for comment on the price increase.