Key statistics:

• Natural gas consumption in India is approximately 189 million MMSCMD, with over half being imports.
• GAIL is paying premium prices of $17-$20 MMBtu for urgent cargoes, compared to usual spot prices of $12-$15 MMBtu.
• The government aims for 80% allocation stability for industrial consumers, which limits production capacity.

The ongoing geopolitical tensions are impacting gas supply to India’s textile centers. The current conflict has severely disrupted global fuel trade routes, affecting industrial consumers across the nation. Officials have not confirmed the exact impact on supply chains.

Industry experts warn that the high prices are putting significant strain on energy-dependent sectors like textiles. One expert stated, “This high price indicates a considerable burden on energy-intensive sectors like textiles.”

The government’s Natural Gas Control Order aims to prioritize key sectors but still leaves industrial buyers facing uncertainty regarding supply and pricing. As of midday today, the situation remains fluid with no clear resolution in sight.

Amid these challenges, there is a call for India to diversify its energy resources aggressively. “India must boldly diversify its energy resources,” said an industry analyst.

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