Adani Total Gas Raises Rates Amid Middle East Conflict
Adani Total Gas raised industrial rates to 119 rupees per cubic meter after supply cuts. The company cited Middle East conflict impacting LNG transit routes.
Adani Total Gas Limited in India has announced a significant price increase for industrial gas supplies, citing restricted availability due to the conflict in the Middle East. The company, which is a joint venture involving the Adani Group and France-based energy major TotalEnergies SE, issued a notice to customers regarding the operational challenges posed by recent geopolitical events.
The disruption is largely attributed to the near-halt of transit through the Strait of Hormuz, a vital shipping lane situated between Iran and Oman. This passage carries approximately 20% of global oil consumption and vast quantities of liquefied natural gas. Attacks on vessels in the area and subsequent retaliatory strikes have led to severe constraints on supply routes.
In its communication to industrial clients, the company noted that these external factors have forced a reduction in available gas volumes.
\"Due to recent geo-political developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints.\"
As of Tuesday, the price for gas consumption exceeding 40% of the daily contract quantity has been set at 119 Indian rupees ($1.30) per standard cubic meter. This marks a sharp rise from previous rates, which were estimated to be around 40 rupees per standard cubic meter. Adani Total Gas has not yet issued a formal response to inquiries regarding the price adjustment.
