New Delhi, March 3, 2026 — India’s industrial gas supply has come under strain after Qatar suspended liquefied natural gas (LNG) production, declaring force majeure on deliveries in the wake of regional hostilities.
Qatar, which accounts for about 40 percent of India’s LNG imports, halted output following damage to facilities from an Iranian drone strike. The disruption has led to supply cuts ranging between 10 and 40 percent for industrial consumers, while retail CNG distribution is being maintained to safeguard transport and household needs.
Petronet LNG Ltd has notified key distributors, including GAIL (India) Ltd and Indian Oil Corporation, of the suspension. Nearly half of India’s crude oil and more than half of its LNG imports pass through the Strait of Hormuz, where heightened tensions have slowed shipments and driven up freight and insurance costs.
To bridge the shortfall, companies are exploring spot market purchases. However, LNG prices have surged to around $25 per million British thermal units — nearly double the rates under some long‑term contracts. Industry sources caution that prolonged disruption could sharply raise input costs for critical sectors such as fertilisers and power generation.
