Indian gas companies have reduced supplies of natural gas to industrial consumers after concerns emerged about lower LNG availability from the Middle East. The supply reduction began on Tuesday, according to Reuters reports.
Major suppliers including GAIL (India) Ltd and Indian Oil Corporation informed customers late on Monday that gas allocations would be lowered. The cuts are estimated to range between 10% and 30% for different industrial users.
The reduction in supply follows a halt in liquefied natural gas production in Qatar on Monday. The shutdown came amid rising tensions in the Gulf after Iran launched strikes on several countries in the region.
These actions were carried out following Israeli and United States military strikes against Iran. The situation has also disrupted the movement of oil and gas shipments through the Strait of Hormuz, an important shipping route for global energy trade.
The disruption in the Strait of Hormuz has affected the transport of energy cargoes moving through the Gulf region. Freight charges, insurance costs, and energy prices have increased as a result of the situation.
The Strait handles a significant portion of global oil and gas trade. Any disruption to shipments through the route affects supply chains for several importing countries, including India.
India is the world’s 4th-largest importer of LNG and depends heavily on overseas supplies to meet domestic demand. A large share of these imports comes from countries in the Middle East.
Qatar remains India’s biggest LNG supplier and accounts for a substantial portion of its imports. Other suppliers include the United Arab Emirates, the United States, Oman and Nigeria.
India is also the largest LNG buyer for Abu Dhabi National Oil Company and the second-largest buyer of LNG from Qatar.
Petronet LNG Ltd, the country’s largest LNG importer, has informed buyers including GAIL and other companies about the possibility of lower supply volumes.
In response, companies such as Indian Oil, GAIL and Petronet LNG are preparing to seek cargoes from the spot market.
However, spot purchases are expected to be costlier because of higher LNG prices as well as increased shipping and insurance costs.
Read More: Crude Oil Prices Surge as Iran Conflict Escalates, Strait of Hormuz Shipping Disrupted!
The temporary reduction in gas supply shows the impact of supply disruptions in the Gulf region on India’s energy imports. Industrial users are likely to face limited allocations while companies assess alternative cargo purchases.
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Published on: Mar 4, 2026, 9:12 AM IST
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