India has trimmed natural gas supplies to industries amid expectations of tighter availability following production disruptions in the Middle East, sources said. The move comes after top LNG producer Qatar suspended output.
On Monday, Qatar halted liquefied natural gas production as regional tensions escalated following strikes between Iran, Israel, and the United States. The unrest has also disrupted shipments through the Strait of Hormuz, pushing global energy prices and shipping costs higher.
India—the world’s fourth-largest importer of LNG—depends heavily on Middle Eastern supplies. Sources said top LNG importer Petronet LNG Ltd informed gas marketers, including GAIL (India) Ltd, about reduced deliveries. India remains a major client for both the Abu Dhabi National Oil Company and Qatari LNG.
Late Monday, GAIL (India) Ltd and Indian Oil Corp notified customers of the cuts, which reportedly range from 10% to 30%. The reductions align with minimum contractual lifting quantities, shielding suppliers from penalties, sources added.
To offset the shortfall, companies such as IOC, GAIL, and Petronet LNG plan to issue spot tenders for additional supplies. However, spot prices, freight, and insurance costs have surged, complicating procurement efforts.