In a bold move, Ultra Gas Public Company Limited, a leading Thai energy firm, plans to pump ₹900 crore (about $108 million) into expanding its liquefied natural gas (LNG) infrastructure in India. Announced on April 10, 2026, this investment targets new storage terminals and regasification units in key coastal hubs like Gujarat and Odisha, aiming to boost LNG handling capacity by 20% by 2028.
The timing is critical. Escalating tensions from the Iran-Israel conflict, which erupted last month, have disrupted global oil and gas supplies. Iran, a top OPEC producer, cut exports by 15% due to sanctions and naval blockades in the Strait of Hormuz—through which 20% of world’s LNG passes. India’s LNG imports, already at 25 million tonnes annually (per Petroleum Planning & Analysis Cell data), face a 10-12% price hike, pushing costs to ₹1,200 per MMBtu.
Ultra Gas, partnering with Indian firms like GAIL and Petronet LNG, sees opportunity in the chaos. “We’re securing India’s energy future with reliable, scalable infra,” said CEO Somchai Rattanakorn. The project includes a 5 MMTPA terminal in Mundra, creating 2,000 jobs and cutting import dependency on volatile Middle East routes by 8%.
This aligns with India’s National Gas Grid vision, targeting 15% gas in the energy mix by 2030 (up from 6.5% now). Amid war risks, it shields consumers from blackouts and inflation—LPG prices have jumped 7% already. Experts predict stable supply could save India $2 billion yearly in forex.
FAQs [Frequently Asked Questions]
1. What is Ultra Gas investing in?
Ultra Gas is spending ₹900 crore on LNG storage terminals and regasification units in India to increase capacity by 20% by 2028, partnering with GAIL and Petronet.
2. Why now, amid the Iran war?
Iran’s export cuts and Strait disruptions raised LNG prices 10-12%; this expands reliable supply for India’s 25 million tonne annual imports.
3. What benefits for India?
It creates 2,000 jobs, cuts Middle East dependency by 8%, and supports the goal of 15% gas in energy mix by 2030.
4. How does it impact prices?
Stable infra could save $2 billion in forex yearly, preventing further hikes like the recent 7% rise in LPG costs.
(Image Source- Free Press Journal)