Indian firms cut industrial gas supply as Qatar halts production

GAIL and Indian Oil Corp informed customers of the gas supply cut late on Monday, one of the sources said. The cuts range from 10 per cent to 30 per cent, two of the sources said.

The cuts have been set at minimum lifting quantities that would shield the suppliers from any penalties from the customers based on contractual terms, the sources said. GAIL, Petronet and IOC were not immediately available for comment.

The sources declined to be named because they were not authorised to speak to the media.

To make up for the LNG shortfall, companies including IOC, GAIL, Petronet LNG are planning to issue spot tenders, two of the sources said, although spot prices, freight, and insurance costs have surged.

(Reporting by Nidhi Verma; Additional reporting by Emily Chow in Singapore; Editing by Florence Tan and Kate Mayberry)