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.