Energy News Today: India's Power and Gas Sector

India’s energy landscape is seeing major developments, with power infrastructure investments, cross-border electricity trade and evolving natural gas demand shaping the sector. 

From BHEL’ s Rs 65 crore investment in its joint venture with NTPC  to India’s approval of extended power exports to Nepal and the recent diplomatic negotiations between India and China over deepening energy engagement signals the country’s growing energy infrastructure and regional cooperation.

These latest developments highlight the importance of energy security, diplomacy and fulfilling industry demands in a sustainable manner. Here's a roundup of five key developments shaping the sector right now.

BHEL Approves Rs 65 Crore Investment in NTPC JV

Bharat Heavy Electricals Limited (BHEL) has cleared a fresh equity infusion of Rs 65 crore into its joint venture, NTPC BHEL Power Projects Private Limited (NBPPL).

The investment, approved by BHEL’s board on September 14, 2026, will be made in one or more tranches. Key details include:

• NBPPL is a 50:50 joint venture between BHEL and NTPC, formed in April 2008 to execute EPC contracts for power plants.
• The capital will be infused in one or more tranches during FY2026-27, via cash at face value.
• The move aims to help NBPPL settle urgent liabilities and remain a going concern, it’s provisional turnover fell sharply, from Rs 18.19 crore (FY24) to just Rs 1.04 crore (FY26).

Also Read: Advancing India's Manufacturing Realm Toward Global Leadership

India Clears 18-Hour Daily Power Exports to Nepal

In a diplomatic gesture The Ministry of Power has approved exporting electricity to Nepal for 18 hours a day until December 31, 2026, after devastating floods crippled the country's hydropower capacity.

• Approval covers up to 600 MW via the Muzaffarpur-Dhalkebar 400kV line and 54 MW via the Tanakpur-Mahendranagar line.
• The devastating floods, triggered by an ice-rock avalanche near the Nepal-Tibet border on August 26, knocked out roughly 550 MW of Nepal's power capacity.
• Further supply beyond January 2027 will be reviewed in December.
• The Ministry called it part of longstanding energy cooperation between the two nations.

India, China Discuss Deepening Energy Cooperation

China National Petroleum Corporation (CNPC) Chairman Dai Houliang met Petroleum Minister Hardeep Singh Puri in New Delhi, days after PM Modi and President Xi Jinping held talks.

• Both sides explored cooperation in oil and gas, new energy, and green, low-carbon development.
• The meeting comes amid a West Asia crisis, with Houthi attacks threatening Saudi oil facilities.
• India and China are the world's top two crude oil importers, the discussions added weight for global energy governance.
• Executives from ONGC and Indian Oil Corporation also attended. Cooperation in the oil and gas sector could influence future commercial engagement, energy trade and supply-chain relationships.

LNG Demand Rebound Hinges on Middle East De-escalation

At the Gastech conference in Bangkok, industry executives said LNG imports in India and China could recover once the Middle East supply crunch eases.

The current supply disruption has placed pressure on the international liquefied natural gas market, affecting availability and prices. However, easing supply constraints could encourage buyers to return to the market.

• The Strait of Hormuz disruption has cut off major volumes from Qatar and the UAE, once a fifth of global LNG supply.
• Asian spot LNG prices have surged to nearly USD 30/mmbtu, up from around USD 10 before the conflict.
• GAIL Chairman Deepak Gupta noted price-sensitive industries are switching to alternative fuels.

A recovery in LNG demand would reflect the continuing role of natural gas in Asia’s energy consumption.

Natural Gas Imports Rise Despite Price Surge

Despite costlier cargoes, India's natural gas imports continue climbing, driven by the fertilizer sector, CNG vehicle growth, and falling domestic production.

• Spot LNG prices have hit USD 25/mmbtu, with India sourcing 35-40 percent of imports from the spot market.
• The development underscores the challenge faced by gas-consuming industries, which must balance fuel requirements against higher procurement costs.
• The Asian JKM benchmark averaged USD 19/mmbtu (April-August), against USD 12 a year earlier.
• For energy-intensive sectors, rising prices could increase operating expenses and influence fuel-switching decisions.