Qatar's LNG Strikes: India's Energy Crisis Unfolds

Qatar, India's primary supplier of imported natural gas, announced a force majeure on LNG deliveries due to halted production prompted by an Iranian drone strike. The disruption results in a significant supply reduction for Indian industries, reaching a staggering 40% cut, according to sources.

India relies heavily on Qatari LNG for its power, fertilizer, and natural gas demands, with the country importing around 27 million tonnes annually. The strikes, a response to Israeli and US actions, have effectively stalled oil and LNG shipments through the crucial Strait of Hormuz, a vital maritime passage for India's imports.

Petronet LNG Ltd, one of the key importers, has alerted its partners including GAIL and Indian Oil Corporation about the supply issues. As industries face cutbacks, India looks to meet shortages through the spot market, despite soaring costs. Spot market prices now stand at USD 25 per million British thermal unit, significantly higher than term contracts.