India's Urea Production Halved Amid West Asia Tensions Disrupting Gas Supply
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West Asia Tensions Halve India's Urea Production, Threaten Kharif Season
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News18•22-03-2026, 12:15
West Asia Tensions Halve India's Urea Production, Threaten Kharif Season
•India's urea plants are operating at half capacity due to disrupted LNG flows via the Strait of Hormuz amid West Asia tensions.
•Petronet LNG declared force majeure after upstream suppliers couldn't deliver contracted volumes, impacting gas distributors like GAIL, IOC, and BPCL.
•Gas supplies to fertilizer units have been curtailed to 60-65% of normal levels, with some units falling below 50% when turnarounds are factored in.
•Reduced loads lead to a 40% increase in energy consumption for less fertilizer production, causing a direct financial hit to plants.
•New pricing structures from GAIL and operational coordination issues add to financial uncertainty and safety risks for plant operations.
