India forced to buy LNG three times costlier due to coal shortage

Amidst the scorching heat and severe power crisis in the country, the government has finally decided to buy Liquefied Natural Gas (LNG) at three times higher price. Torrent Power Limited and GAIL India Limited have taken this decision for May.

There is a possibility that another shipment may have to be ordered by the end of this month or in the first week of June. Due to the acute shortage of coal, electricity can be made using this LNG in the power plant. In fact, the country had to take this decision under compulsion.

Read | DNA Explainer: How coal shortage and heatwave have led to power outage in India

According to experts, the huge increase in LNG prices due to the Russia-Ukraine war has affected the whole world. LNG is now being sold at three times the price. Due to the lack of coal in India, the pace of power generation has slowed down, so the government has made all efforts to increase the supply of coal.

According to Bloomberg, the demand for electricity is setting new records due to the summer season, so LNG has to be bought at this increased price.

Electricity production affected due to shortage of coal

Experts say that in India, coal is used the most to generate electricity and 71% of the total electricity comes from coal-fired power plants. This year there is a shortage of coal in the country, which has affected the production of electricity.

Now many Indian firms are gathering information about the prices of LNG around the world. Experts in the energy sector say that there is a power crisis in Pakistan too and it has also bought LNG at expensive prices. This step was taken so that people do not have trouble on the occasion of Eid.