India gas supply shortage may ease in the coming months as rising global LNG prices make imports from distant suppliers such as the United States and Norway economically viable, government officials said. However, shipments from these countries take longer to reach India, which could lead to a temporary supply gap.
India Gas Supply Shortage Linked to LNG Price Rise
Officials said the India gas supply shortage has been influenced by rising global LNG prices. Earlier, India imported LNG from Qatar at prices between $6 and $8 per MMBtu.
Now prices have climbed to around $15 per MMBtu. At these levels, LNG imports from the US and Norway become economically feasible despite longer shipping distances.
LNG Imports May Help Ease India Gas Supply Shortage
Officials explained that changing LNG supply sources takes time. Apart from Qatar, the main alternative suppliers are the United States and Norway.
Shipping industry estimates show LNG vessels may take up to two months to travel to these countries and return with cargo.
Because of this delay, the gas supply shortage may continue for a short period before additional shipments arrive.
LPG Output Increased to Manage Gas Supply
Meanwhile, the government has increased LPG production by 10% to ensure stable supply for households.
On March 5, the Ministry of Petroleum and Natural Gas directed oil refiners to maximise LPG output by utilising all available propane and butane.
This step aims to protect domestic cooking gas supply despite the current gas supply shortage.
Government Prioritises Household LPG Supply
Officials said the government’s top priority is to maintain uninterrupted LPG supply for households while also supporting commercial users.
To address concerns from restaurants and hotels, the government has formed a committee comprising three executive directors from oil marketing companies.
The committee will review requests for LPG supply and allocate additional volumes where possible.
Officials said genuine requirements will be addressed and relief will be provided based on availability.
