India Pools Natural Gas Amid Iran War: Supply Security
Workers at an Indian natural gas facility amidst supply challenges.
Key Highlights
India pools 7 mmscmd natural gas at $11.60/mmbtu for priority sectors due to Iran war supply crunch. Gail manages diversion amid 60% import drop.
India is set to pool 7 million metric standard cubic meters per day (mmscmd) of natural gas to supply city gas distributors, fertilizer manufacturers, and industries amid a supply crunch exacerbated by the Iran war. The gas will be supplied at a price of $11.60 per million British thermal units (mmbtu).
This decision comes in response to a 60% drop in imports, which has created shortages in key sectors. State-run Gail (India) Ltd. will manage the diversion of gas to ensure that priority sectors receive the necessary supply.
The pooled gas will consist of both imported and domestically produced natural gas. The initiative aims to alleviate shortages specific to these sectors, ensuring continued operations and supply to consumers.