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Qatar continues to be the top source of LNG for India. In 2023, India imports around 10.6-10.7 million tonnes of LNG from Qatar.
Qatar’s Ras Laffan industrial city came under Iranian attack. (Photo: X)
India is watching closely as the US-Israel-Iran war turns into what many were afraid of – an energy war. While Israel took the first step by attacking the South Pars gas site in Iran, a move condemned by many countries, Tehran’s retaliation by striking Qatar’s Ras Laffan industrial city, the world’s largest LNG hub, has worried many.
Qatar is now paying the price of the energy war that Israel started as Iran continues to attack its major LNG sites. QatarEnergy confirmed “extensive damage” to its main gas facility following the Iranian attack at Ras Laffan. Qatar’s Foreign Ministry condemned the attacks as “a gross violation of the state’s sovereignty, as well as a direct threat to its national security.” It reiterated its call on Iran to refrain from targeting civilian facilities and energy infrastructure.
How the Ras Laffan attack affected oil and gas prices
Oil prices jumped strongly after the attack – Brent crude rose to around $110-112 per barrel, a notable daily gain as traders priced in higher supply risks.
Natural gas benchmarks also rose sharply amid fears of disruption to LNG exports from Qatar, one of the world’s top suppliers.
Qatar projects supply of about 80 million metric tons of LNG in 2025, according to recent energy-market data. That 80 million tonnes was about 18.8 percent of total global LNG exports in 2024-25, making Qatar one of the world’s largest LNG exporters (usually behind the US and Australia). This volume mainly reflects cargo shipped from its major liquefaction facilities at Ras Laffan.
Global LNG trade totals run at more than 400 million tonnes per year, with Qatar consistently contributing about a fifth of that total – meaning one in every five tonnes of LNG shipped internationally came from Qatari facilities before the disruption.
Because so much of LNG flows through the Strait of Hormuz and originates from Ras Laffan, even short-term production stoppages or export disruptions could reduce supply globally, pushing up natural gas prices in Europe and Asia and depleting broader energy markets.
What was the impact on Indian and Asian markets?
Major equity markets fell after the South Pars and Ras Laffan attacks, with indices in Asia, Europe and the US falling as investors moved into safer assets and higher energy costs increased economic risks.
The S&P 500 fell 1.36 percent while the Dow Jones Industrial Average fell 1.63 percent. The Nasdaq Composite declined 1.46 percent.
in india, A huge decline was seen in the stock indices Rising oil prices weighed on sentiment. Nifty 50 and Sensex witnessed losses, tracking losses in global equities as oil prices rose due to fresh escalation in Iran war. Nifty 50 fell by more than 522 points while Sensex saw a fall of 1,722 points.
Asian markets fell in early trading, mirroring overnight weakness on Wall Street. Japan’s Nikkei 225 and South Korea’s Kospi were down 2.74 percent and 2.50 percent, respectively.
Why do Qatar’s LNG sites matter to India?
Qatar continues to be the top source of LNG for India. In 2023, India is expected to import about 10.6-10.7 million tonnes of LNG from Qatar, which is about 35-54 per cent of India’s total LNG imports. Recent trade data shows Qatar’s share in India’s LNG imports by value in 2025-26 is about 46.8 per cent.
LNG is an important fuel for India’s industries, power generation, fertilizer production, city-gas distribution (CNG and piped gas), and as a clean alternative to coal and oil.
India’s leading LNG importer Petronet LNG has a long-term contract with QatarEnergy for about 7.5 million tonnes per annum (MTPA) of LNG, the deal has now been extended till 2048. This provides stable and predictable LNG supply to India, and helps price stability for gas users compared to volatile spot markets.
India is expected to import about 27 million tonnes of LNG in 2024-25, almost half of its total natural gas use. Qatar supplies 40-47 per cent of LNG imports, any disruption in Qatar’s production or logistics could directly impact India’s gas availability.
LNG is the largest component of India’s imports from Qatar (about 40-50 per cent by value). In the first 11 months of 2024, India’s total imports from Qatar stood at $11.49 billion, of which the share of LNG was 38.8 per cent by volume and 41.2 per cent by value.
What impact could the attack on Ras Laffan have on India?
The extent of damage caused by the Ras Laffan attack has not yet been assessed. After reporting “extensive damage”, Qatar’s state energy company, QatarEnergy, said there have been further attacks on its LNG infrastructure by Iran.
Qatar had announced it had halted production of LNG and some downstream products at its Ras Laffan facilities earlier this month amid the escalating war. Some reports had indicated that it could take several weeks to resume operations at Ras Laffan. With “extensive damage” now to the facility, it remains to be seen when Qatar fully resumes LNG operations.
However, it has a direct impact on India, and here’s how:
Inflation is increasing due to disruption in LNG supply
With Qatar’s production affected or halted, India is facing a cut in LNG supplies, leaving the industry scrambling for alternatives. Spot prices of LNG in Asia more than doubled – reaching record highs – increasing cost pressures on importers. Higher LNG and crude oil prices directly impact India’s energy import bill and inflation.
Conflict-related increases in global oil prices increase the cost of petrol/diesel, resulting in higher transportation and commodity prices domestically. Although there has been no increase in fuel prices in India so far, it remains to be seen what happens after the attack on Ras Laffan.
Impact on strategic areas
Fertilizer Production: India’s urea industry is dependent on LNG as a feedstock; Disruptions may result in reductions in production, affecting agricultural input supplies and farmer costs.
Urban Gas Distribution and CNG: The cut in LNG deliveries has reduced the supply of CNG used by vehicles and piped gas in cities, which will potentially increase retail CNG prices.
What could be the impact on Indian families?
Even if you’re not buying LNG directly, disruptions are mitigated in obvious ways:
Energy and fuel prices increased
Petrol and diesel prices often rise with the increase in crude oil prices. These fuel prices affect everything from commuting costs to food transportation and prices of bulk goods – leading to higher daily expenses.
Even if LPG prices (for cooking) are subsidized, higher global energy costs put pressure on government budgets and may influence future pricing decisions.
Electricity bills may increase
Some power plants use imported gas for electricity; Higher LNG costs could increase production costs, which could be reflected in higher tariffs or greater subsidies required over time.
Inflation affects the household budget
Rising transportation and energy costs are impacting the economy – food, goods and services have become more expensive, reducing disposable income for ordinary households.
indirect agri-food effects
Fertilizer shortages or high fertilizer costs drive up agricultural input prices, which can increase the cost of foods at the grocery store.
What is the current situation in India?
The government has asked people to conserve gas and energy instead of panicking, as officials are making arrangements to supply alternative crude oil and gas.
There are noticeable, localized LPG supply challenges in parts of India as geopolitical tensions impact supply flows (particularly through the Strait of Hormuz). Governments are prioritizing domestic LPG supplies, but commercial allocations have been cut and many industries are switching fuels.
The Center has urged states to expand piped gas (PNG) infrastructure so that households can rely less on cylinder supplies in future.
The government says India’s crude oil supplies and refined fuel reserves are safe and sufficient to meet current domestic needs.
Also, it acknowledged that the LPG supply situation is worrying (“still worrying”), while urging calm and action to manage consumption and distribution.
March 19, 2026, 13:13 IST
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