Qatar LNG Halt After Iran Strike Sparks Energy Security Concerns for India

India’s energy security has come under fresh scrutiny after QatarEnergy halted liquefied natural gas (LNG) production following an Iranian strike amid escalating tensions in West Asia.

The disruption has raised concerns as India remains heavily dependent on Qatar for LNG supplies. In a statement posted on X, QatarEnergy said it had suspended LNG production and related operations after attacks targeted key industrial facilities. The company also invoked force majeure, a contractual clause that allows parties to temporarily suspend contractual obligations due to extraordinary circumstances beyond their control.

The declaration applies to buyers linked to facilities including Ras Laffan Industrial City, one of the world’s largest LNG export centres.

Qatar’s role in India’s energy supply

Trade data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) shows Qatar ranks among India’s top six suppliers of crude oil and petroleum products in FY 2025–26 (April–December).

India has imported around $8.3 billion worth of crude oil and petroleum products from Qatar during the fiscal year so far. While Russia, Iraq and the United Arab Emirates dominate India’s crude import basket, Qatar remains strategically important due to its LNG exports.

Nearly half of India’s LNG from Qatar

According to DGCIS import data, Qatar accounts for roughly 46.8% of India’s LNG imports in FY 2025–26, representing nearly half of the country’s imported gas supply.

In value terms, India has imported about $4.74 billion worth of LNG from Qatar so far this fiscal year. The United States and the United Arab Emirates follow at a distance, contributing approximately 11.6% and 10.9%, respectively.

This heavy concentration means that any sustained halt in Qatari LNG production could directly affect India’s gas availability, particularly for sectors such as power generation, fertiliser production, city gas distribution and industrial fuel.

Exposure beyond LNG

India’s energy exposure to Qatar also extends to crude oil and petroleum products. Over the past five fiscal years, India’s combined crude and LNG imports from Qatar have ranged between $8 billion and $14 billion annually, with the highest levels recorded in FY 2022–23.

Even in FY 2025–26 (April–December), LNG imports from Qatar are valued at $4.74 billion, while other crude and petroleum imports stand at about $3.54 billion, reflecting the scale of India’s reliance on Qatari energy.

India monitoring developments

The Ministry of Petroleum and Natural Gas said it is closely monitoring developments in West Asia and assessing their potential impact on energy supplies.

Officials indicated that diversifying import sources and maintaining strategic reserves remain key elements of India’s long-term energy security strategy. However, a prolonged halt in Qatari LNG production could tighten global gas markets, push up spot LNG prices and increase India’s import bill.

Market outlook

The disruption has already tightened global LNG markets, raising competition for alternative cargoes across Asia and Europe. If the halt continues, India may need to increase spot market purchases to meet demand.

The situation once again highlights a structural challenge for India: its energy security remains closely linked to geopolitical stability in West Asia. With nearly half of its LNG imports sourced from Qatar, even temporary supply disruptions can have significant ripple effects on domestic energy supply chains and industrial demand.