India reduces gas supplies to industries as Qatar halts production; buyers look for alternatives, tanker rates double to $200,000
Times of India
by TOI BUSINESS DESKMarch 3, 2026
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Indian industries are grappling with reduced natural gas allocations as Qatar halts liquefied natural gas (LNG) production amid escalating Middle East tensions. The suspension of output from Qatar, the world’s largest LNG exporter, follows an Iranian drone strike on Gulf nations, including a response to US and Israeli actions. This disruption has forced Indian buyers to seek alternative sourcing strategies, with companies like Petronet LNG Ltd. and GAIL (India) Limited exploring spot tenders and government-to-government procurement to secure additional supplies.
Qatar remains India’s top LNG supplier, accounting for nearly half of the country’s imports last year. The halt in production has already sent shockwaves through global energy markets, with charter rates for LNG tankers skyrocketing to over $200,000 per day—more than double previous levels. This surge reflects heightened competition for available supplies and longer shipping routes, particularly from the US to Asian markets.
Indian authorities are taking steps to manage the crisis, prioritizing household gas consumption while preparing to ration industrial and refinery supplies if shortages persist. Oil Minister Hardeep Singh Puri has emphasized ensuring availability and affordability of key petroleum products, signaling potential restrictions on non-essential uses. Meanwhile, global energy security concerns have intensified as regional tensions show no signs of easing, raising fears of prolonged disruptions in LNG exports from Qatar and other key producers.
The situation underscores the delicate balance of global energy markets and the far-reaching impact of Middle East conflicts. As buyers scramble for alternatives and shipping costs surge, the ripple effects on international energy prices and supply chains are likely to be felt well beyond the region. For India, this means navigating a complex landscape of reduced imports, strained domestic demand, and heightened geopolitical risks—a challenge that could shape the country’s energy strategy for years to come.
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Originally published on Times of India on 3/3/2026