Adani Total Gas raises industrial gas price to ₹119/scm as Middle East conflict disrupts LNG supply
According to a customer notice reviewed by Reuters, ATGL has raised the price of gas used beyond the contracted daily limit to ₹119 per standard cubic metre. The revised rate applies when industrial clients consume more than 40% above their daily contract quantity.
- Mar 5, 2026,
- Updated Mar 5, 2026 2:11 PM IST
Adani Total Gas Ltd (ATGL) has significantly increased the price of natural gas supplied to industrial customers who exceed their contracted usage limits, citing reduced gas availability due to escalating geopolitical tensions in the Middle East. The move comes amid disruptions to global energy supply routes following the ongoing conflict involving Iran.
According to a customer notice reviewed by Reuters, ATGL has raised the price of gas used beyond the contracted daily limit to ₹119 per standard cubic metre. The revised rate applies when industrial clients consume more than 40% above their daily contract quantity. Previously, the price for such additional gas supplies was around ₹40 per standard cubic metre, according to a source familiar with the development. The new pricing structure came into effect from Tuesday.
The company attributed the price increase to supply constraints caused by disruptions in liquefied natural gas (LNG) flows. In its notice to customers, ATGL said it had received reduced upstream gas supplies due to geopolitical developments affecting global LNG routes.
“Due to recent geopolitical developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company said in the communication to its customers.
Strait of Hormuz disruption
The supply challenges are linked to the ongoing conflict involving Iran and retaliatory military strikes in the region. The tensions have disrupted shipping movements through the Strait of Hormuz, a strategic maritime corridor between Iran and Oman.
The narrow waterway is one of the world’s most critical energy transit routes. Nearly one-fifth of global oil consumption passes through the Strait of Hormuz, along with substantial volumes of liquefied natural gas shipments.
However, tanker and cargo traffic through the region has slowed significantly in recent days after reports that several vessels operating in the area were struck amid the conflict. The disruptions have raised concerns about global energy supply chains, particularly for LNG-dependent markets.
With LNG shipments facing logistical challenges and uncertainty, companies dependent on imported gas have begun facing supply curtailments, prompting adjustments in pricing and supply management.
Adani Total Gas
Adani Total Gas is a joint venture between India’s Adani Group and French energy major TotalEnergies SE. The company operates in the city gas distribution sector and supplies piped natural gas (PNG) to households and industries as well as compressed natural gas (CNG) for vehicles across multiple Indian cities.
The price revision applies specifically to industrial customers consuming gas beyond their contracted limits, rather than to standard contracted supply volumes.
The development highlights how geopolitical tensions in key energy corridors such as the Strait of Hormuz are beginning to impact downstream energy markets, including industrial gas consumers in India.
Adani Total Gas Ltd (ATGL) has significantly increased the price of natural gas supplied to industrial customers who exceed their contracted usage limits, citing reduced gas availability due to escalating geopolitical tensions in the Middle East. The move comes amid disruptions to global energy supply routes following the ongoing conflict involving Iran.
According to a customer notice reviewed by Reuters, ATGL has raised the price of gas used beyond the contracted daily limit to ₹119 per standard cubic metre. The revised rate applies when industrial clients consume more than 40% above their daily contract quantity. Previously, the price for such additional gas supplies was around ₹40 per standard cubic metre, according to a source familiar with the development. The new pricing structure came into effect from Tuesday.
The company attributed the price increase to supply constraints caused by disruptions in liquefied natural gas (LNG) flows. In its notice to customers, ATGL said it had received reduced upstream gas supplies due to geopolitical developments affecting global LNG routes.
“Due to recent geopolitical developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company said in the communication to its customers.
Strait of Hormuz disruption
The supply challenges are linked to the ongoing conflict involving Iran and retaliatory military strikes in the region. The tensions have disrupted shipping movements through the Strait of Hormuz, a strategic maritime corridor between Iran and Oman.
The narrow waterway is one of the world’s most critical energy transit routes. Nearly one-fifth of global oil consumption passes through the Strait of Hormuz, along with substantial volumes of liquefied natural gas shipments.
However, tanker and cargo traffic through the region has slowed significantly in recent days after reports that several vessels operating in the area were struck amid the conflict. The disruptions have raised concerns about global energy supply chains, particularly for LNG-dependent markets.
With LNG shipments facing logistical challenges and uncertainty, companies dependent on imported gas have begun facing supply curtailments, prompting adjustments in pricing and supply management.
Adani Total Gas
Adani Total Gas is a joint venture between India’s Adani Group and French energy major TotalEnergies SE. The company operates in the city gas distribution sector and supplies piped natural gas (PNG) to households and industries as well as compressed natural gas (CNG) for vehicles across multiple Indian cities.
The price revision applies specifically to industrial customers consuming gas beyond their contracted limits, rather than to standard contracted supply volumes.
The development highlights how geopolitical tensions in key energy corridors such as the Strait of Hormuz are beginning to impact downstream energy markets, including industrial gas consumers in India.