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Qatar stopped liquefied natural gas production at a key facility after attacks, affecting India’s supply. Shares of major Indian gas companies may be impacted.
Shares of LNG-linked companies may remain in focus as Qatar halts production at a major export facility amid Middle East tensions.
Shares of Petronet Liquefied Natural Gas Limited, Gas Authority of India Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited, along with other liquefied natural gas supply and distribution companies, are likely to be in focus on Thursday, March 5, after Qatar halted liquefied natural gas production at a key facility following attacks during the escalating Middle East conflict.
The disruption could strain supplies to India and put pressure on domestic energy companies to maintain supply and distribution.
The development is significant for India, which depends on Qatar for nearly 40 per cent of its liquefied natural gas imports.
While some industrial consumers may shift to alternative — albeit costlier — fuels, the city gas distribution sector that supplies compressed natural gas has warned of severe stress.
City gas distribution operators said replacing contracted liquefied natural gas from Qatar with spot cargoes — currently priced at more than double the contracted rate — could erode compressed natural gas’s cost advantage and risk pushing consumers toward electric vehicles.
The situation worsened after Qatar halted liquefied natural gas production at the world’s largest export facility supplying gas to multiple countries, including India, following an Iranian drone strike.
Petronet Liquefied Natural Gas Limited said in a stock exchange filing that it has issued a force majeure notice to its Qatari supplier, QatarEnergy, citing the inability to dispatch liquefied natural gas cargoes.
QatarEnergy has also invoked force majeure on Petronet Liquefied Natural Gas Limited, saying it cannot fulfil supply commitments due to the escalating hostilities in the region.
“In light of the recent and ongoing war in the Middle East involving Iran and Israel, vessels are presently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, the loading port of QatarEnergy,” Petronet said.
Qatar supplies around 40 per cent of the 27 million tonnes of liquefied natural gas imported by India annually, making the disruption a major concern for the country’s gas supply chain.
The impact is already being felt by city gas companies. Several firms have written to state-run gas utility Gas Authority of India Limited, raising concerns over the availability of domestic gas and liquefied natural gas required to meet demand for compressed natural gas used in vehicles and piped natural gas supplied to households.
In a March 3 letter to Gas Authority of India Limited’s chairman and managing director, the Association of City Gas Distribution Entities warned that reducing the supply of low-priced gas to 60 per cent and halting spot market allocations could significantly tighten gas availability.
The association cautioned that the move could adversely affect priority segments such as transport and household gas supply.
(With PTI Inputs)
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March 05, 2026, 07:13 IST
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