In India, amid a severe shortage of liquefied petroleum gas, demand is growing for traditional fuels, including firewood and dried cow dung.
The crisis was triggered by disruptions in LPG shipments through the Strait of Hormuz amid the war in the Middle East. Reuters and other outlets report that India, where about 65% of cooking fuel relies on imports, is facing one of the most serious gas crises in recent decades, and authorities have already restricted industrial consumption to prioritize supplying households.
Amid the shortage, Indian media are reporting that some households and small businesses are returning to cheaper and more accessible fuel sources. In particular, the Times of India writes about the shift to coal, firewood, and kerosene in Jamshedpur, while Bloomberg notes a rise in biofuel sales.
According to the Times of India, commercial consumers in several Indian cities have faced a sharp rise in LPG prices, and supplies have either been cut or partially diverted to the black market. This has already led to higher costs for restaurants, bakeries, and small retailers, and some businesses have been forced to seek alternatives to gas.
In 2025, the population consumed 7.6 billion cubic meters, or 36% of the total 21 billion cubic meters of natural gas consumed in Ukraine, according to the DIXI Group analytical center, citing data from Energy Map.
“The second-largest segment in terms of volume is industry and other consumers—5.0 billion cubic meters (24%),” the center noted.
In turn, district heating companies that generate heat for households consumed 3.9 billion cubic meters of gas (18%), while district heating companies serving other consumers, particularly government agencies, consumed 2.5 billion cubic meters (12%).
Another approximately 2 billion cubic meters (10%) represent losses—a calculated figure defined as the difference between gross gas consumption and the sum of final consumption across all consumer categories.
According to DIXI Group data, last year gross gas consumption decreased by 4% compared to 2024 and by 31% compared to 2021. At the same time, gas consumption by district heating companies for residential needs increased (+17%), as did consumption by the population itself (+6%). At the same time, gas consumption by district heating companies for other consumers decreased by 16%, and by industry and other consumers—by 12%.
Compared to 2021, gas consumption by industry and other consumers fell by more than half (-54%). Gas consumption by district heating companies for the population also decreased (-24%), as did consumption by the population (-12%). In contrast, gas consumption by district heating companies for other consumers increased by 47%.
According to Serbian Economist, Azerbaijan has expressed its readiness to assist Montenegro in connecting to the Trans Adriatic Pipeline (TAP), said Dino Tutundzic, State Secretary of the Ministry of Energy and Mining of Montenegro, in an interview with Report.az. According to him, Podgorica considers the Ionian-Adriatic Pipeline (IAP) to be a strategic regional project that should connect Montenegro to TAP and, through it, to the Southern Gas Corridor and Caspian supplies.
Tutundzic said that Montenegro plans to intensify negotiations with neighboring countries – Croatia and Albania – and focus on preparing the infrastructure base, after which it will be possible to talk about gas delivery to end consumers. He also noted Azerbaijan’s interest in participating in Montenegro’s energy projects, including in the renewable energy segment.
The issue of connecting Montenegro to TAP has its own specific features: the country still makes virtually no use of natural gas, as it has no gas market or gas distribution network. This is evident from the report of the Energy Community Secretariat, which explicitly states that “there is no gas market in Montenegro” and “there is no gas network.”
TAP is part of the Southern Gas Corridor, connecting supplies from the Caspian region to European markets via Greece, Albania, and the Adriatic Sea, with access to Italy.
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The average level of reserves in underground storage facilities in Europe fell to 29.99% at the end of the gas day on February 27, according to data from Gas Infrastructure Europe. This is 16 percentage points lower than the average for the last five years.
The fill rate of underground storage facilities in Germany and France, Europe’s leading economies, is significantly lower than the European average — 20.6% and 21.4%, respectively, and 10.7% in the Netherlands.
The spot price of gas with “day ahead” delivery on the benchmark European TTF hub closed at $387 per 1,000 cubic meters on Friday.
Since the beginning of 2025, the transit of Russian gas through Ukraine has ceased. Europe is trying to compensate for the shortage of Gazprom’s pipeline gas supplies by importing liquefied natural gas. At the end of 2025, countries in the region purchased 109 million tons of LNG (142 billion cubic meters after regasification), which is 28% more than in 2024. In February 2026, liquefied gas imports reached 9 million tons, which is 9% higher than a year earlier.
Despite high demand, there remains a large unused capacity reserve—on February 27, terminals were operating at 64% of their throughput capacity.
Europe entered the current heating season with incomplete underground gas storage facilities. The need to replenish the reserves used up during this period will be an additional factor driving demand on the global market throughout the coming year.
Given not only technical but also realistic and economic constraints that will limit the European injection campaign in the summer of 2026, the question of how much Europe will be able to fill its UGS facilities by next winter and how risky the 2026/27 heating season will be will be relevant.
According to Serbian Economist, the energy partnership between Belgrade and Baku is rapidly moving beyond symbolic diversification and beginning to transform into a separate supply chain capable of significantly influencing the balance of the Serbian gas market. Azerbaijan’s Deputy Minister of Energy Orkhan Zeynalov said that by the end of 2026 – early 2027, Azerbaijan could cover up to 20% of Serbia’s gas needs, which, according to him, directly strengthens energy security by reducing dependence on a single source.
The context is simple: Serbia has remained predominantly dependent on gas imports in recent years, and the issue of diversification has become part of a broader agenda, ranging from heating and electricity prices to negotiations with the EU on energy integration. Reuters previously estimated that Serbia receives about 80% of its gas from Russia, with alternative volumes currently serving as insurance and a bargaining chip.
The legal framework for the Azerbaijani route has already been established. The contract between SOCAR and Srbijagas, signed in November 2023, provides for the supply of up to 400 million cubic meters per year in 2024-2026, with the possibility of increasing volumes after 2027. At the same time, official statements by the governments of Serbia and Azerbaijan have recorded separate seasonal agreements for additional volumes during the winter period.
Actual deliveries from Azerbaijan began in 2024, but so far have remained small compared to the overall market. According to data cited by Azerbaijan’s State Statistics Committee, Serbia received about 72.6 million cubic meters of Azerbaijani gas between February and December 2024. For comparison, according to estimates by Azerbaijani and regional sources, in January-November 2025, supplies had already grown to 192 million cubic meters.
Why is Belgrade taking this more seriously than “just another contract”? Because gas is beginning to be linked to industrial projects. In mid-February 2026, the leaders of Serbia and Azerbaijan confirmed plans to build a 500 MW gas-fired power plant, which is seen as a joint project with an estimated commissioning date of 2029. Industry media estimate the investment at around €600 million. Such a plant is capable of creating stable demand for fuel and, accordingly, pushing forward discussions on long-term supply terms — which is why Baku’s statements separately mention the topic of gas prices for future generation.
The stated target of 15-20% seems realistic precisely as a “market share” rather than the maximum technical capacity of the route. Even with Serbia’s moderate consumption, this means the need to reach several hundred million cubic meters per year on a sustainable basis and to secure a commercial supply formula after 2026. At the same time, Baku is making it clear that it sees Serbia as a potential energy hub for the Western Balkans and is looking for additional areas of cooperation, including projects in the field of green energy and hydrogen.
Naftogaz of Ukraine has attracted an additional €50 million from the European Investment Bank for gas imports, the company said
“Another important step to get through the winter stably. Naftogaz has attracted an additional €50 million in financing from the European Investment Bank,” Naftogaz said in a statement on Telegram on Thursday evening.
According to the statement, these funds will be used to import gas and support the energy system during peak loads, when cold weather and shelling create the greatest pressure.
It is noted that the loan was made possible thanks to the support of the European Commission.
As indicated by Naftogaz, this financing complements the EUR 300 million EIB loan and EUR 127 million in EU grant support with the participation of the Norwegian government that have already been raised.
“It is also important to note that Naftogaz has committed to reinvesting the equivalent of this amount in renewable energy projects,” the company said.
