India not immune to global energy shortage issue: Geosphere Capital

“Indian utilities and others are having to import. They have turned off coal supplies to some of the aluminium and other producers and you are going to see some rationing there because there is a critical shortage of coal supplies and India's LNG import prices are shooting up because LNG import prices into Asia and Europe are approaching USD 30 per mmbtu, which is the equivalent of USD 180 per barrel. So, this is a global energy shortage issue, which India is absolutely not escaping unscathed, unfortunately,” said Sanger.

Meanwhile, Peng said that there were efforts to try to swap coal for natural gas, but now there is neither coal nor natural gas.

“There is just not enough supply for imports in the natural gas space and China has deliberately reduced its coal imports by some three quarters over the past year. So, the solution to this is fairly simple, we need to go back to dirtier energy, one cannot turn from coal to natural gas overnight and that's how this problem is going to be resolved by importing more coal,” he said.

For the entire discussion, watch the video