Urea Crisis: Disruptions in LNG Supply Hit Indian Fertilizer Production

India's urea production faces a significant challenge as LNG supply disruptions due to force majeure declarations impact gas supply. This has led to a sharp decline in production capacity and energy inefficiencies, while financial uncertainties loom with changing pricing agreements, jeopardizing fertilizer availability ahead of crucial planting seasons.

India's urea plants are operating at reduced capacity due to disruptions in LNG supply caused by force majeure declarations, industry sources confirmed on Sunday.

Petronet LNG Ltd and other state-owned gas distributors faced curtailments in gas supply, resulting in decreased urea production and increased energy consumption.

Added to the challenges are complex pricing strategies that threaten financial stability for producers as crucial sowing seasons approach.

(With inputs from agencies.)