Adani Total Gas Lifts CNG Prices as Six Months of Hormuz Disruption Keep LNG Costs Elevated
QatarEnergy spent roughly $1 billion on emergency U.S. LNG cargoes to replace Hormuz-blocked supply; Indian consumers are now absorbing the downstream cost.
Adani Total Gas raised compressed natural gas prices by ₹4 per kilogram across all its operating areas effective Saturday (2026-08-01), citing a sharp rise in sourcing costs from reduced domestic gas availability and elevated global LNG prices. The company said global LNG markets had witnessed exceptional volatility over the past six months.7
JKM, the Asian LNG benchmark, last traded at $21.45 per MMBtu on Sunday (2026-08-02), roughly double the $10-13 per MMBtu range that prevailed in February before Iran conflict shuttered the Strait of Hormuz to LNG traffic. The strait, before the war, carried approximately 20% of the world's oil and gas. Asia absorbs around 90% of LNG exports from Qatar and the UAE combined, and any extended Hormuz closure removes a significant share of the market's traded supply with limited near-term substitutes.7,5
QatarEnergy's response illustrates how far the market was stretched. The company bought dozens of U.S. LNG cargoes to keep Asian customers supplied, with purchases valued at roughly $1 billion, a sharp increase from the four spot cargoes it acquired in the prior year, according to shipping data compiled by Kpler. Of 33 cargoes procured, 28 had reached their destinations by Thursday (2026-07-30); the remaining five were en route to buyers in South Korea, Taiwan and India.6
The Atlantic rerouting was expensive and improvised. Qatar and the UAE together accounted for nearly 59% of India's LNG imports in 2025, yet not one Qatari or Emirati cargo reached Indian shores in March 2026. Oman, Nigeria, Angola and the United States stepped in to cover the shortfall. India's LNG imports recovered to 1.95 million tonnes in April 2026, up from 1.67 million tonnes in March, but remained below the 2.08 million tonne monthly average recorded across 2025, according to Kpler data.1,7
India's government moved to ease the strain. New Delhi withdrew a March 2026 order regulating natural gas supply once Hormuz shipments began to resume, lifting rationing that had been introduced as the closure threatened roughly half the country's LNG consumption.4
But Pakistan had less room to manoeuvre. Qatar supplies roughly 90% of Pakistan's LNG imports and accounts for approximately 20% of global LNG supply. The country received only three Qatari cargoes after the conflict began, with inflows effectively halting in March 2026. The power sector, which consumes nearly 70% of Pakistan's imported LNG, faced a 28,000-MW summer demand gap. Outages were contained partly because hydropower output expanded to around 4,100 MW from 1,800 MW.3
The damage to Qatar's production base makes rapid supply recovery unlikely. Industry assessments indicate repairs at Ras Laffan Industrial City could require three to five years, with damage to LNG Trains 4 and 6 removing approximately 12.8 million tonnes per year of capacity. QatarEnergy has announced a longer-term expansion from 77 million tonnes to 142 million tonnes per year by the end of the decade, but that plan addresses demand growth rather than the near-term gap.2,6
Europe's position is also under pressure. The Strait of Bab el-Mandeb closed alongside Hormuz, compounding rerouting costs for tankers supplying European buyers. Middle Eastern LNG makes up 7-11% of Europe's imports, a smaller exposure than Asia's, yet significant given that LNG covered more than 40% of Europe's gas supply in the 2025-26 winter season. European gas storage sat below 54% full as of July 22 (2026-07-22), against 64% at the same point in 2025, according to OilPrice.com. ICE Endex TTF front-month closed Sunday (2026-08-02) at €59.05 per MWh.5,2
Adani Total Gas posted an 18% year-on-year rise in CNG sales volume to 218 million standard cubic metres in the June quarter. Overall gas volumes rose 13% to 303 million standard cubic metres, driven by network expansion. The volume growth shows that elevated prices have not yet suppressed demand.7
The key forward indicator is the spread between JKM and ICE Endex TTF front-month — wide enough to pull additional U.S. cargoes eastward before the winter refilling window closes, or not. For Indian buyers, the more immediate risk is a return of domestic supply curbs if LNG sourcing costs remain elevated through the northern hemisphere heating season.2,5,7