Gas from new sources will end shortage, say officials

GEOGRAPHY – RESOURCES

11 MARCH 2026

  • The current crunch in India’s natural gas supply is likely to be short-lived as the prevailing higher prices make imports from distant sources economically viable, according to government sources.
  • However, such shipments typically take longer to arrive, meaning the country could face a shortage in the interim, they said.
  • Apart from Qatar, our other options are Norwegian or American gas, and that takes a long time to reach India.”
  • “We were getting Qatar gas at $6-8 per MMBtu (metric million British thermal unit), and now the price is $15 per MMBtu,” he said.
  • “But, the economics of it is that, once the price crosses even $10 per MMBtu, then gas from Norway and the U.S. becomes viable despite the long distance,” he said.

Increasing domestic LPG Production

  • India’s LPG output has increased by 10% after prioritising supplies to households over industry users, an official said requesting anonymity.
  • On March 5, the Petroleum and Natural Gas Ministry had asked all oil refining companies to maximise production, directing that all propane and butane produced, recovered, or otherwise available to be utilised for LPG output.

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