WORLD NEWS
Indian companies have cut natural gas supplies to industries in anticipation of tighter global LNG supply after QatarEnergy, the world’s largest liquefied natural gas (LNG) producer, suspended production following Iranian drone attacks.
Industry sources told Reuters that top importer Petronet LNG Ltd notified GAIL (India) and other firms of the reductions, which range from 10% to 30%. GAIL and Indian Oil Corp (IOC) informed customers of the cuts late Monday, citing contractual minimum lifting quantities to avoid penalties.
India, the fourth-largest LNG buyer globally, depends heavily on Middle Eastern imports. The nation is the top LNG client of Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG. To mitigate the shortfall, companies including IOC, GAIL, and Petronet LNG are exploring spot tenders, although spot prices, freight, and insurance costs have surged.
QatarEnergy’s production suspension came after Iranian drones attacked a water tank at Mesaieed Industrial City and an energy facility in Ras Laffan. The company declared force majeure, temporarily freeing it from contractual obligations due to extraordinary circumstances.
The US and Israel’s ongoing war with Iran has further disrupted the region, including the strategic Strait of Hormuz, a key energy chokepoint. Global energy markets have reacted sharply, with European natural gas prices climbing again. The Dutch TTF benchmark soared over 33% on Tuesday, following a near 40% spike on Monday.
Qatar’s LNG exports account for roughly 20% of the global market. With supply constrained, prices worldwide have surged, impacting industries and markets far beyond the Middle East. European stock markets slid at the start of trading amid heightened uncertainty.
US President Donald Trump stated that Washington has “the capability to go far longer” than its projected four-to-five-week military operations in Iran. Meanwhile, Tehran and its allies have struck back at Israel, Gulf states hosting US assets, and critical energy infrastructure, raising the prospect of prolonged regional instability with far-reaching consequences for global energy markets.
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