Qatar LNG Supply Cut to India

Qatar, India's largest supplier of imported natural gas, has declared force majeure on LNG deliveries following a halt in production. This halt is a direct consequence of Iranian drone strikes on Gulf countries, which are retaliatory actions for Israeli and United States strikes against Iran. The disruption has led to a significant cut of up to 40% in LNG supplies to Indian industries, affecting sectors like power generation and fertilizer production. The attacks have also severely impacted oil and LNG shipments through the vital Strait of Hormuz, controlled by Iran, causing global energy prices to surge and increasing war-risk insurance and shipping costs. Indian gas importers, including Petronet LNG, GAIL (India), and Indian Oil Corporation, are now forced to seek more expensive LNG from the spot market to meet the shortfall, with prices roughly double the term contract rates.