CNG and PNG prices may increase in India due to the ongoing war in the Middle East. Following Iran’s drone attack, the world’s largest exporter Qatar has stopped production at its Liquefied Natural Gas (LNG) plant. Due to this, the movement of ships coming to India has stopped and there has been a huge reduction of up to 40% in the supply of gas in the domestic market. India imports 40% of its LNG requirement (about 27 million tonnes annually) from Qatar. Due to supply interruption, City Gas Companies (CGD) have warned that if the situation does not improve soon, the prices of CNG and PNG may increase. India’s largest gas importer Petronet LNG has issued a ‘force majeure’ notice to Qatari company Qatar-Energy. The route to supply oil and gas is almost closed. The biggest challenge for India is the almost closure of the ‘Strait of Hormuz’. This is a narrow sea route through which countries like Qatar and UAE export their oil and gas. Due to the war between Iran and Israel, this route is no longer safe. Drone attack on plant, production of LNG halted. According to Qatar-Energy, Iran had attacked the plant located in ‘Ras Laffan’ and ‘Mesaieed’ Industrial City of Qatar with drones. Due to security reasons, the company has currently stopped the production of LNG. Last week, America and Israel had launched a strike on Iranian bases, in response to which Iran has targeted American bases and ports in countries like UAE, Qatar, Kuwait and Saudi Arabia. There is also a threat to fertilizer and electricity production. Imported LNG in India is used not only in homes and vehicles, but also in electricity generation and urea (fertilizer) production. CNG companies wrote a letter to the government, warning of the crisis. In view of the shortage of gas, the ‘Association of CGD Entities’ (ACE) has written a letter to the government company GAIL, seeking clarity. Companies say that if they do not get cheap gas coming from Qatar, they will have to buy expensive gas from the ‘spot market’. Petronet LNG issues ‘force majeure’ notice Petronet LNG told the market regulator that it is unable to bring gas from Qatar due to war-like conditions. The company has also issued force majeure notice to companies like GAIL, Indian Oil (IOC) and Bharat Petroleum (BPCL) informing them that the supply of gas to them will be less. Insurance issue: The company has also made it clear that insurance cover is not available on business losses caused due to war. —————————– Also read this news… Claim- India has only 25 days of oil left: Import route closed amid Israel-Iran war; The government is looking for new suppliers. Amidst the increasing tension in West Asia and the Iran-Israel war, it is being claimed that India now has only 25 days of crude oil and refined oil stock left. News agency ANI has given this update regarding the energy security of the country according to government sources. However, the government will not increase the prices of petrol and diesel yet. Read the full news…
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Gas production stopped in Qatar, 40% supply reduced in India: Crisis due to Middle East war; CNG and LPG prices may increase
