New Delhi’s energy security faces a sudden jolt as escalating tensions in the Middle East disrupt vital natural gas supplies. State-run GAIL India Limited has announced a complete halt in liquefied natural gas (LNG) imports from Qatar, its key long-term supplier, due to the raging Israel-US-Iran conflict.
In a critical exchange filing, GAIL revealed that Petronet LNG Limited (PLL), its upstream partner, invoked a force majeure notice on March 3. The decision stems from severe maritime restrictions in the Strait of Hormuz, crippling LNG vessel movements between Qatar and India. Compounding the crisis, Qatar’s Ras Laffan LNG liquefaction plant – the world’s largest – has been shut down amid the turmoil.
QatarEnergy, Petronet’s supplier, has also signaled potential force majeure due to recent military clashes. As a result, GAIL’s LNG quota from PLL stands at zero from March 4, 2026, onward. The company is closely monitoring the situation and may implement supply cuts to downstream customers if disruptions persist.
‘We are assessing the impact and will notify stakeholders accordingly,’ GAIL stated, adding that supplies from alternative sources remain unaffected for now. Operating India’s vast 11,400 km natural gas pipeline network, GAIL commands nearly 75% market share in gas transmission, linking sources to major industries and consumers.
The conflict’s ripple effects are shaking global energy markets. Asia’s spot LNG prices, hovering near three-year highs, dipped slightly to $23.80 per million British thermal units (MMBtu) on Thursday but remain double last week’s levels. Traders attribute the volatility to joint US-Israel airstrikes on Iran, met with Iranian missile and drone retaliation in the Gulf region.
The Strait of Hormuz, a chokepoint funneling massive oil and gas volumes worldwide, remains the focal point of anxiety. Reports indicate some LNG tankers rerouting from Europe to Asia, intensifying supply competition. With Qatar’s Ras Laffan operations stalled, the stakes couldn’t be higher.
Experts warn prolonged Middle East strife could destabilize global energy further, hitting import-dependent nations like India hardest. As GAIL navigates this precarious landscape, businesses and households brace for potential gas shortages and price surges.