Indian firms reduce gas supply to industries after Qatar halts LNG production: Report
Companies in India have reduced fuel supplies to industries in anticipation of tighter supply after top producer Qatar
suspended its liquefied natural gas (LNG) production following a drone attack, Reuters has reported, quoting four industry sources with knowledge of the matter.
India, the world’s fourth-largest buyer of LNG, relies heavily on producers from the Middle East for its imports. It is the top LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.
Top LNG importer Petronet LNG Ltd has informed GAIL (India), the top gas marketing company, and other companies about lower supplies, two of the sources told the news agency.
GAIL and Indian Oil Corp informed customers of the gas supply cut late on Monday, one of the sources said.
The cuts range from 10 percent to 30 percent, two of the sources told Reuters.
The cuts have been set at minimum lifting quantities that would shield the suppliers from any penalties from the customers based on contractual terms, the sources said.
To make up for the LNG shortfall, companies including IOC, GAIL and Petronet LNG are planning to issue spot tenders, two of the sources said, although spot prices, freight, and insurance costs have surged.
