International oil and gas markets have entered a period of intense turmoil following an Iranian missile attack on Ras Laffan, Qatar’s premier Liquefied Natural Gas (LNG) facility. The strike has resulted in a total halt of production at the site, which stands as the world’s largest LNG hub.

The Escalation of Regional Conflict

The attack is part of a series of Iranian reprisals following US-Israeli strikes that initiated the Middle East war on February 28. Tehran has increasingly targeted energy infrastructure and US assets throughout the Gulf.

This latest escalation follows a previous missile attack in early March on Qatari gas fields, which forced QatarEnergy to suspend operations. These actions are reportedly retaliation for an Israeli strike on Iran’s South Pars gas field, a segment of the world’s largest natural gas reservoir.

The conflict, now in its third week, has effectively turned the Strait of Hormuz into a war zone. Consequently, tanker traffic, which usually accounts for one-fifth of global oil trade, has slowed to a near-standstill. Currently, over 700 cargo vessels remain stranded in safe zones near major Middle Eastern ports.

Profound Impact on India’s Energy Security

The disruption poses a significant challenge to India, which relies on the international market for approximately 50% of its natural gas. Specifically, India procures roughly 40% of its LNG imports from Qatar. It means that Qatari gas accounts for 20% of India’s total natural gas consumption.

Energy economist Kirit Parikh notes that India will be forced to curtail gas usage, particularly within the industrial and power sectors. Data regarding India’s current consumption reflects the severity of the shortage:

• Total Daily Consumption: 189 Million Metric Standard Cubic Meters per Day (MMSCMD).
• Domestic Production: 97.5 MMSCMD.
• Supply Disruption: 47.4 MMSCMD of imported gas is currently unavailable due to force majeure conditions.

In response to these disruptions, state-owned gas companies in India have begun placing orders for LNG cargoes from alternative international sources to bridge the supply gap.

Broader Regional Consequences

While thousands of casualties have been reported in Iran following strikes on the Islamic Republic’s leadership. It includes the recent killing of intelligence chief Esmail Khatib. Tehran continues to deploy missile and drone attacks across the region. With the Strait of Hormuz largely impassable. Saudi Arabia’s Yanbu port remains the only functional major oil export route in the Gulf.

As global energy prices spiral, nations dependent on Gulf hydrocarbons are reassessing their consumption patterns. It’s seeking new supply chains to mitigate the impact of the ongoing war.

Also Read: Nanda Devi Tanker Delivers 47,000 MT Of LPG To Gujarat After High-Risk Hormuz Transit