India concerned over shutdown of Qatar LNG facility as Iran war threatens energy supplies

India’s primary concern amid the escalating conflict involving Iran is the shutdown of Qatar’s liquefied natural gas (LNG) production facilities, government sources said, as the crisis threatens to disrupt crucial energy supplies to the country.

Officials told reporters that New Delhi is closely monitoring developments in West Asia, particularly the halt in LNG production at Qatar’s key facilities following attacks linked to the widening regional conflict.

The shutdown has raised concerns about the continuity of gas shipments to India, which relies heavily on LNG imports from the Gulf region.

India imports a significant portion of its natural gas through long-term contracts with Qatar, making the stability of production and shipping routes in the region vital for the country’s energy security. Any prolonged disruption could affect industrial gas supply, city gas distribution networks and power generation.

The crisis intensified after attacks in the Gulf forced QatarEnergy to halt LNG production at its facilities, including those at Ras Laffan, one of the world’s largest LNG export hubs.

The company also declared force majeure on shipments after the strikes, signalling that it may not be able to fulfil supply commitments due to circumstances beyond its control.

Officials said India is exploring measures to mitigate potential disruptions. Discussions are underway with the United States and the International Development Finance Corporation for risk insurance and financial guarantees for maritime trade moving through the Strait of Hormuz, a key energy shipping route in the region.

The strait is one of the world’s most important chokepoints for oil and LNG shipments, and tensions in the region have already raised concerns about shipping safety and insurance costs for vessels transporting energy supplies.

At the same time, the government is working to diversify supply sources. Officials said India is negotiating with multiple energy partners globally to ensure stable supplies if disruptions in the Gulf continue. They also emphasised that global oil markets currently have adequate supply despite the geopolitical tensions.