New Delhi, Adani Total Gas Ltd, the city gas joint venture of Adani Group and France’s TotalEnergies, has nearly tripled gas prices for large industrial consumers after disruptions to LNG supplies triggered by the West Asia conflict halting shipping through the Strait of Hormuz, sources said.
The company raised industrial gas prices to about ₹ 119 per standard cubic metre from ₹ 40, according to a company memo cited by sources, as it tapped costlier alternative supplies following curbs in contracted LNG availability.
Shipping through the Strait of Hormuz — the narrow sea lane that carries about one-fifth of the world’s oil and large volumes of liquefied natural gas (LNG) — has slowed to a near halt following US and Israeli attacks on Iran and Tehran’s retaliatory strikes.
Qatar shut down the LNG plant after it came under drone and missile attack. Indian buyers could not send ships to Qatar because shipping through the Strait of Hormuz — the narrow waterway between Iran and Oman — remains effectively shut.
With LNG supplies from QatarEnergy, India’s largest gas supplier, disrupted, supply cuts have been imposed on several industrial users and city gas distribution companies. Consumers affected by the curbs have increasingly turned to alternative fuels that cost more than twice the normal rate.
“Due to recent geopolitical developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company said, explaining the steep price increase.
Countries in the Middle East account for roughly 30 per cent of global crude oil and 20 per cent of global LNG production, most of which transits the Strait of Hormuz.
India imports about 88 per cent of its crude oil and around half of its LNG, with 40-50 per cent of crude oil and 50-60 per cent of LNG shipments routed through the corridor, which is roughly 21 nautical miles wide at its narrowest point, with the shipping lanes even narrower — two 2-mile-wide channels separated by a 2-mile buffer.
Energy prices have already surged amid the conflict. Brent crude has climbed to around $ 84 per barrel from an average of $ 66-67 in January-February 2026, while Asian spot LNG prices have jumped from about $ 10 per million British thermal unit to $ 24-25 per mmBtu.
India, which relies on long-term LNG contracts with Qatar for a large share of its gas needs, has seen cargo deliveries temporarily suspended, forcing supply cuts of up to 40 per cent for several industrial consumers and city gas distributors.
While some industrial users can switch to costlier alternative fuels, the city gas sector has warned of severe stress. Operators say replacing contracted Qatari LNG with spot cargoes priced at more than double could erode the cost advantage of compressed natural gas (CNG) and potentially push consumers toward electric vehicles.
Supplier QatarEnergy has issued a force majeure notice to its Indian buyer, Petronet LNG Ltd, citing hostilities in the region that have prevented it from fulfilling supply commitments. Petronet has, in turn, declared force majeure to downstream buyers, who have begun curtailing supplies to customers such as Adani Total Gas Ltd (ATGL).
State-run GAIL (India) said on Thursday it will assess curtailing supplies to natural gas customers after a force majeure notice from long-term supplier Petronet.
The allocation of LNG from Petronet to GAIL has been reduced to zero with effect from March 4, GAIL said, adding that the potential impact from the force majeure could not be quantified.
Sumit Ritolia, analyst at Kpler, said India sits among the most exposed buyers in the region. As per Kpler tracking, more than half of its LNG imports come via Hormuz (Qatar and the UAE), making the country particularly vulnerable to both physical supply disruptions and price shocks.
“This dependence matters because many of India’s long-term LNG contracts are linked to oil prices, while any additional volumes typically need to be sourced from the spot market – often at significantly higher prices during supply disruptions,” he said. “The current situation is already tightening regional balances and increasing replacement costs.”
If the disruption through Hormuz persists, Indian buyers may need to procure higher-priced spot cargoes or reduce consumption. Price-sensitive sectors, particularly industrial users and smaller gas distributors, could shift toward alternative fuels such as oil products, naphtha or petroleum coke.
He said replacement LNG volumes could come from the US, West Africa, Australia or Russia, but longer shipping distances mean higher freight costs and slower delivery times.
“In the near term, India’s priority will likely be ensuring supply security for critical sectors, particularly fertilizers with the sowing season approaching, as well as cooking gas and power generation,” he added.>
