Qatar's LNG Halt After Iran's Strike Raises India's Energy Security Concerns

India's energy security is under fresh scrutiny after state-owned QatarEnergy halted liquefied natural gas (LNG) production following an Iranian strike amid escalating tensions in West Asia. The development comes at a time when India remains significantly dependent on Qatar for both LNG and other petroleum imports.

In a statement posted on X, QatarEnergy confirmed that it had suspended LNG production and associated products following attacks targeting key industrial facilities.

QatarEnergy to stop production of LNG

Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products.…

— QatarEnergy (@qatarenergy) March 2, 2026

The company later invoked force majeure, a contractual clause that allows parties to suspend obligations when extraordinary circumstances beyond their control prevent fulfilment of the contract.

QatarEnergy declares Force Majeure

Further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy has declared Force Majeure to its affected buyers.

QatarEnergy values its relationships with all of its…

— QatarEnergy (@qatarenergy) March 4, 2026

QatarEnergy said the declaration applies to affected buyers after production was halted at facilities including Ras Laffan, one of the world's largest LNG export hubs.

Qatar Among India's Top Energy Suppliers

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 approximately $8.3 billion worth of crude 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's presence within the top tier underscores its continuing strategic relevance to India's energy mix.

Nearly Half of India's LNG Comes From Qatar

According to DGCIS import data, Qatar accounts for approximately 46.8 per cent 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 considerable distance, contributing roughly 11.6 per cent and 10.9 per cent, respectively.

This concentration risk means that any sustained production halt in Qatar could directly affect India's gas availability, especially for sectors dependent on imported LNG, such as power generation, fertilisers, city gas distribution, and industrial fuel.

Crude and LNG: A Dual Exposure

Beyond LNG, India's 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, peaking in FY 2022–23.

LNG consistently forms a major component of this trade. Even in FY 2025–26 (April-December), LNG imports from Qatar stand at $4.74 billion, while other crude and petroleum imports are valued at about $3.54 billion.

This dual exposure makes the current disruption particularly sensitive.

India's Response

India's Ministry of Petroleum and Natural Gas, in its response on X, stated that it is closely monitoring developments in West Asia and assessing potential impacts on energy supplies. Officials indicated that diversification of import sources and strategic reserves remain part of India's broader energy security framework.

In view of ongoing geopolitical developments in the Middle East, the Minister of Petroleum & Natural Gas reviewed the supply situation for crude oil, LPG, and other petroleum products with senior officials from the Ministry and PSUs.

We are continuously monitoring the evolving… pic.twitter.com/N4tZHktXSM

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) March 2, 2026

However, in the short term, any prolonged halt in Qatari LNG production could tighten global gas markets, potentially pushing up spot LNG prices and increasing India's import bill.

What Lies Ahead

For now, the duration of the halt remains unclear. The halt has already tightened global LNG markets, pushing up prices and increasing competition for alternative cargoes in Asia and Europe.

If the disruption continues, India may be forced to increase purchases in the spot LNG market, potentially raising the country's import bill.

The episode once again highlights a structural reality: India's energy security remains closely tied to geopolitical stability in West Asia.

With nearly half of its LNG imports sourced from Qatar, even temporary disruptions have the potential to ripple through domestic supply chains and industrial demand.