New Delhi is bracing for potential gas shortages as escalating tensions in the Middle East disrupt vital energy supplies. State-run GAIL (India) Limited has confirmed that liquefied natural gas (LNG) shipments from Qatar have come to a complete standstill due to the ongoing Israel-US-Iran conflict.
In a regulatory filing, GAIL revealed that its long-term supplier, Petronet LNG Limited (PLL), invoked a force majeure notice on March 3. The declaration stems from severe disruptions in the Strait of Hormuz, where naval restrictions have blocked LNG vessels traveling between Qatar and India. Compounding the issue, Qatar’s Ras Laffan LNG liquefaction plant—the world’s largest—has been shut down amid the chaos.
QatarEnergy, Petronet’s upstream supplier, has also signaled a potential force majeure due to recent military clashes in the region. As a result, GAIL’s LNG allocation from Petronet will drop to zero starting March 4, 2026. The company is closely monitoring the situation and may implement supply cuts to downstream customers if the blockade persists.
GAIL operates India’s extensive 11,400-kilometer natural gas pipeline network, commanding about 75% of the transmission market. This infrastructure links multiple gas sources to major industries and consumers across the nation. While supplies from other sources remain unaffected for now, the Qatar disruption poses a significant threat to energy security.
Global energy markets are reeling from the fallout. Asia’s spot LNG prices, which surged to three-year highs, softened slightly to around $23.80 per million British thermal units (MMBtu) on Thursday—but still double last week’s levels. The volatility erupted after joint US-Israel airstrikes on Iran prompted retaliatory missile and drone attacks in the Gulf, heightening fears over oil and gas flows.
The Strait of Hormuz, a critical chokepoint linking the Persian Gulf to the Arabian Sea, carries a substantial share of the world’s energy exports. Reports indicate some LNG tankers are rerouting from Europe to Asia, intensifying competition for available supplies. With Ras Laffan operations halted, the ripple effects are profound.
Experts warn that prolonged Middle East instability could destabilize global energy markets further, hitting import-dependent nations like India hardest. GAIL has assured stakeholders it will provide timely updates to stock exchanges as the crisis unfolds. For now, industries and households remain on high alert.