Global oil and gas markets plunged further into turmoil after an Iranian missile strike on Ras Laffan Industrial City, home to Qatar’s largest liquefied natural gas facility. The attack on one of the world’s biggest LNG plants has forced a complete halt in production at the site.
The Gulf region has borne the brunt of Iran’s retaliation following US-Israeli strikes that triggered the wider conflict. Tehran has targeted US-linked assets while also striking key energy facilities, drawing strong reactions from hydrocarbon-rich Gulf monarchies.
What Iran's attack on Qatar gas hub means for India
The attack on Ras Laffan Industrial City energy infrastructure, in retaliation for an Israeli strike on the South Pars gas field, might just spell trouble for India, which depends on imports for over 88% of its crude oil and for the majority of its gas supplies. The conflict had already disrupted India's gas supplies from Qatar, its largest supplier, which accounts for about one-third of India’s LPG imports and nearly half of its LNG imports.
Iran's strike on Ras Laffan has paralysed 20 per cent of India’s natural gas imports, forcing a 47.4 MMSCMD supply disruption. With Qatar being a primary supplier, India must now curtail gas usage in the power and industrial sectors. State-owned firms are currently racing to secure alternative LNG cargoes to prevent a broader domestic energy collapse as regional maritime routes remain blocked.
Sujata Sharma, Joint Secretary, Ministry of Petroleum, said on Thursday that any development in the Middle East will impact us. "We import 90 per cent of our LPG and 47 per cent of our LNG from Qatar. As the war continues, its effects are being felt here, which is why we are trying to provide updates every day," she said during a presser in New Delhi.
Supply disruption deepens crisis
The strike on one of the world’s largest LNG facilities has led to a complete halt in production, intensifying global energy concerns. Qatar, among the top LNG producers alongside the United States, Australia, and Russia, has faced repeated disruptions. Earlier in March, Iranian missile attacks on Qatari gas fields had already forced QatarEnergy to suspend operations.
Initial concerns stemmed from logistical disruptions due to tensions around the Strait of Hormuz. However, the latest strike on Ras Laffan’s gas-to-liquids facility marks a more serious escalation, as infrastructure damage could take significantly longer to repair even after hostilities subside.
Impact on India’s long-term energy security
The duration and severity of India’s energy challenges will depend on the extent of damage to Ras Laffan and the time required to restore LNG and PNG supplies. Indian companies, including Petronet LNG, GAIL, and Gujarat State Petroleum Corporation, have long-term supply agreements with Qatar. Petronet LNG alone imports around 7.5 million tonnes per annum, while GSPC and GAIL import smaller volumes.
Qatar remains India’s largest LNG supplier, providing shipments worth USD 6.39 billion in 2024 to 25, along with LPG supplies worth USD 3.21 billion. Beyond LNG and LPG, India also imports key petrochemicals such as ethylene, propylene, ammonia, urea, and polyethene from Qatar.
The ongoing disruptions have affected India’s energy sector on two fronts. Supply shortages have forced a diversion of natural gas towards priority segments such as PNG for households and CNG for transport, leaving commercial and industrial users facing significant shortages.
