New Delhi, March 5: The ongoing conflict between Israel, the United States, and Iran is starting to affect India’s gas supply. State-owned gas company GAIL (India) Limited has announced that the supply of liquefied natural gas (LNG) from Qatar has been completely halted. The company warned that if the situation persists, downstream customers may face reductions in gas supply.
In an exchange filing, GAIL reported that its long-term supplier, Petronet LNG Limited (PLL), issued a force majeure notice on March 3. This action was taken due to disruptions in maritime navigation through the Strait of Hormuz, affecting the transit of LNG vessels between Qatar and India. Additionally, Qatar’s Ras Laffan LNG liquefaction plant has also been shut down.
According to the filing, Petronet’s upstream supplier, Qatar Energy, has indicated a potential force majeure situation due to recent military clashes in the region. Consequently, Petronet has zeroed out the LNG allocation to GAIL starting March 4, 2026.
GAIL stated that it is assessing the situation and may decide to reduce gas supply to its customers if necessary. However, the company clarified that LNG supplies from other sources are currently unaffected. GAIL is closely monitoring the situation and will keep the stock market informed of any major updates.
In India, GAIL operates a natural gas pipeline network spanning approximately 11,400 kilometers, holding nearly 75% market share in gas transmission. This network connects various gas sources to large industrial consumers and other clients.
The escalating tensions in the Middle East are also causing ripples in the global energy market. Spot LNG prices in Asia softened slightly after reaching a three-year high, with traders reporting prices around $23.80 per million British thermal units, still more than double compared to the previous week.
This surge in energy prices coincided with a joint airstrike by the U.S. and Israel on Iran, prompting Iran to retaliate with missile and drone attacks in the Gulf region, heightening concerns over oil and gas supplies.
Market anxiety is particularly focused on the Strait of Hormuz, a critical maritime route linking the Persian Gulf to the Arabian Sea. This route is vital for the global supply of oil and gas from the Middle East.
Reports indicate that operations at Qatar’s Ras Laffan LNG plant, the world’s largest LNG export facility, have also been halted. Furthermore, some LNG tankers have redirected their routes towards Asia instead of Europe, intensifying competition for supply.
Experts believe that if tensions in the Middle East persist, the global energy market could become even more unstable, impacting countries like India that rely heavily on imports.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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