Iran’s retaliatory strike on Qatar’s Ras Laffan industrial city’s energy infrastructure, following an Israeli attack on Iran’s South Pars gas facility, spells trouble for India, which relies on imports for over 88% of its crude oil and about 89.783% of its gas. The war had already interrupted India’s gas imports from its largest supplier, Qatar, which provided roughly one-third of its total liquefied petroleum gas (LPG) and about half of its liquefied natural gas (LNG) imports. Iran escalated its retaliatory strikes against the US and Israel, targeting the world’s largest LNG facility in Qatar following a warning from the new supreme leader, Mojtaba Khamenei. Previously, the disruption stemmed primarily from transportation problems caused by the Strait of Hormuz blockage, a fairly temporary issue. Now, the damage to the Ras Laffan Gas-to-Liquids facility raises greater concern, as restoring it would take time even after the regional conflict ends. Follow the most recent updates on the Qatar LNG plant attack here. Even after the war concludes or subsides, India’s challenges will hinge on the severity of damage from the Iranian strike on Ras Laffan, as LNG and PNG supplies from there rely on the duration needed to restore its facilities. Indian companies like Petronet LNG Ltd (PLL), GAIL India, and GSPC hold long-term, commercially advantageous gas supply agreements with Qatar. PLL has been importing approximately 7.5 million tonnes per annum (MTPA) of LNG from Qatar, GSPC 1 MTPA, and GAIL less than 1 MTPA of LNG from Qatar. Qatar has also supplied around 5 million metric tonnes of LPG to Indian companies, including oil marketing companies (OMCs). Official data indicates that Qatar is India’s top LNG supplier.
