Adani Total Gas Ltd has raised LNG prices for industrial consumers to three times their daily quota in what is seen as a direct result of the escalating Iran war, which is disrupting India’s energy supply.
The city gas distributor – a joint venture between billionaire Gautam Adani’s group and France’s TotalEnergies SE – raised LNG rates for consumption above 40% of the daily contracted limit. ₹From Rs 120 per standard cubic meter ₹40, Bloomberg reported, citing sources.
The price revision came into effect at 6:00 am on Wednesday. An Adani Total Gas spokesperson did not immediately respond to Bloomberg’s request for comment.
Qatari supply crisis
The rise in prices underlines India’s acute vulnerability to maritime disruptions. Domestic consumers are facing a severe supply shortage after an Iranian drone attack halted operations at Qatar’s Ras Laffan plant, the world’s largest LNG terminal. The cuts are particularly painful for New Delhi, which depends on imports for half its natural gas needs, with Qatar accounting for 50% of those foreign shipments.
Industrial and commercial units represent about 30% of Adani Total’s demand profile. Unlike the residential sector, which receives priority allocation of cheaper domestic gas, this bulk demand is met entirely through expensive LNG imports purchased in the spot market.
risk of force majeure
India’s energy infrastructure is under threat. Other companies, including Petronet LNG Ltd and Gujarat Gas Ltd, have already invoked force majeure clauses to limit deliveries, citing inability to secure scheduled shipments.
Adani Total currently operates across 53 geographies, reaching approximately 14% of India’s population through its direct footprint and a separate venture with Indian Oil Corporation Limited. The sudden cost increase is expected to put pressure on margins for energy-intensive sectors including ceramics, glass and chemicals, which depend on the company’s network for stable fuel.
