It's getting harder for Indian importers to source natural gas from international markets as Europe is drawing away much of the global supply to its shores ahead of winter amid Russian supply cuts.
IndianOil's tender for a spot liquefied natural gas (LNG) cargo received no bids recently, according to people familiar with the matter. Even LNG contracted under long-term deals is no longer secure as Russia's Gazprom has suspended supplies to GAIL, they said. This has resulted in GAIL reducing gas supplies to industries, including fertiliser, power and petrochemical plants, the people cited above said. Supplies for use in CNG vehicles and homes are being maintained. But the industrial segments served by city gas companies are getting affected, they said.
In FY22, India consumed 63.9 billion cubic meters of gas, of which 48% was imported. IndianOil and GAIL didn't respond to queries. Scarcity is the new challenge for Indian gas consumers already battered by high prices, currently at around $42 per mmBtu in the Asian spot LNG market.