India Cuts Industrial Gas Supply as Qatar Halts LNG Output Amid Gulf Tensions
Indian companies have reduced natural gas supplies to industrial consumers by 10% to 30% following a sudden halt in liquefied natural gas (LNG) production by QatarEnergy, amid escalating conflict in the Middle East. The disruption comes as Iran intensified strikes across Gulf nations in response to Israeli and U.S. military actions, leading to a suspension of oil and gas shipments through the strategically vital Strait of Hormuz. The development has triggered a sharp rise in global energy prices and shipping costs, raising concerns for major import-dependent economies like India.
India, the world’s fourth-largest LNG buyer, relies heavily on supplies from Qatar and the United Arab Emirates. Leading importer Petronet LNG Limited has notified GAIL (India) Limited and other firms of reduced cargo deliveries. Subsequently, GAIL and Indian Oil Corporation informed customers late Monday about the supply curtailments. Industry sources said the reductions were calibrated to minimum contractual lifting quantities to avoid penalties under existing agreements.
To bridge the supply gap, companies including Petronet, GAIL and Indian Oil are preparing to float spot tenders for LNG cargoes, despite soaring spot prices, freight, and insurance costs. India remains a key LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG, underscoring its vulnerability to geopolitical disruptions in the Gulf energy corridor.
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