Iran Strikes Qatar’s Ras Laffan LNG Hub: Should India Brace For A Gas Shock?
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Last Updated:March 19, 2026, 13:13 IST
Qatar consistently remains India’s top source of LNG. In 2023, India imported about 10.6–10.7 million tonnes of LNG from Qatar.
resetRapid ReadRapid ReadSummarized by AI.+Iran's attack on Qatar's LNG hub disrupts India's gas supplyIndia faces higher energy costs and inflation risksGovernment urges conservation amid LPG supply concerns More Rapid Read Like this summary?Share Your Feedback
India is watching closely as the US-Israel-Iran war spills into what many many were fearing – the energy war. While Israel made the first move by striking the South Pars gas site in Iran, a move condemned by several countries, Tehran’s retaliation by hitting Qatar’s Ras Laffan Industrial City, the largest LNG hub in the world, has left many worried.
Qatar is now paying the price for the energy war that Israel started as Iran continues to hit its key LNG sites. QatarEnergy confirmed “extensive damage" to its main gas facility after the Iranian attack at Ras Laffan. Qatar’s Foreign Affairs Ministry condemned the strikes as a “flagrant violation of the state’s sovereignty, as well as a direct threat to its national security." It reiterated its call for Iran to refrain from targeting civilian facilities and energy infrastructure.
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How The Ras Laffan Attack Hits Oil And Gas Prices
Oil prices jumped strongly after the attack — Brent crude reached around $110–$112 per barrel, a notable daily gain as traders price in higher supply risk.
Natural gas benchmarks also climbed significantly amid fears of LNG export disruptions from Qatar, one of the world’s top suppliers.
Qatar supplied roughly 80 million metric tons of LNG in 2025, according to recent energy-market data. That 80 million tons amounted to about 18.8 per cent of total global LNG exports in 2024–25, making Qatar one of the world’s largest LNG exporters (typically behind the US and Australia). This volume reflects cargoes shipped from its major liquefaction facilities, mainly in Ras Laffan.
Global LNG trade overall runs well over 400 million tons per year, with Qatar consistently contributing around one-fifth of that total — meaning one in every five tonnes of LNG shipped internationally came from Qatar’s facilities prior to the disruption.
Because such a large share of LNG flows through the Strait of Hormuz and originates from Ras Laffan, even short-term production halts or export bottlenecks can tighten supply globally, pushing up natural gas prices in Europe and Asia and feeding through to broader energy markets.
What Was The Impact On Indian And Asian Markets?
Major equity markets dipped after the South Pars and Ras Laffan attacks, with indices in Asia, Europe and the US trending lower as investors moved into safer assets and priced in economic risk from higher energy costs.
The S&P 500 fell 1.36 per cent while the Dow Jones Industrial Average dropped 1.63 per cent. The Nasdaq Composite declined 1.46 percent.
In India, stock indexes saw sharp declines as oil price spikes weighed on sentiment. The Nifty50 and the Sensex tanked at opening, tracking losses in global equities as the fresh escalation in the Iran war pushed oil prices higher. The Nifty50 fell by over 522 points while the Sensex witnessed a 1,722 points’ dip.
Asian markets declined in early trade, mirroring overnight weakness on Wall Street. Japan’s Nikkei 225 and South Korea’s Kospi were down 2.74 per cent and 2.50 per cent, respectively.
Why Do Qatar’s LNG Sites Matter For India?
Qatar consistently remains India’s top source of LNG. In 2023, India imported about 10.6–10.7 million tonnes of LNG from Qatar, roughly 35–54 per cent of India’s total LNG imports. Recent trade data show Qatar accounts for around 46.8 per cent of India’s LNG imports by value in 2025-26.
LNG is a critical fuel for India’s industries, power generation, fertiliser production, city-gas distribution (CNG & piped gas), and as a cleaner alternative to coal and oil.
India’s flagship LNG importer Petronet LNG has a long-term contract with QatarEnergy for about 7.5 million tonnes per annum (MTPA) of LNG, a deal now extended until 2048. This provides stable and predictable LNG supply for India, and helps with price stability for gas users compared with volatile spot markets.
India imported about 27 million tonnes of LNG in 2024–25, which accounted for approximately half of its total natural gas use. With Qatar supplying 40–47 per cent of LNG imports, any disruption in Qatar’s output or logistics can directly affect India’s gas availability.
LNG is also the single largest component of India’s imports from Qatar (about 40–50 per cent by value). In the first 11 months of 2024, India’s total imports from Qatar were $11.49 billion, with LNG making up a 38.8 per cent share by volume and 41.2 per cent by value.
How Can The Attack On Ras Laffan Affect India?
The damage from the Ras Laffan attack is yet to be ascertained in numbers. After reporting “extensive damage", Qatar’s state energy company, QatarEnergy, said there were more attacks on its LNG infrastructure by Iran.
Qatar had announced that it had halted production of LNG and some downstream products at its Ras Laffan facilities earlier this month amid the escalating war. Some reports had indicated that restarting operations at Ras Laffan could take weeks. Now with “extensive damage" to the facility, it remains to be seen when Qatar fully resumes LNG operations.
However, this directly impacts India, and here’s how:
LNG Supply Disruption Leading To Inflation
With Qatar’s production hit or paused, India faces cuts in LNG supply, leaving industries scrambling for alternatives. LNG spot prices in Asia more than doubled — reaching record highs — increasing cost pressure on importers. Higher LNG and crude prices feed directly into India’s energy import bill and inflation.
Global oil price surges linked to the conflict increase petrol/diesel costs, which in turn raises transport and commodity prices domestically. While there has so far been no increase in India’s fuel prices, what happens after the attack on Ras Laffan remains to be seen.
Impact on Strategic Sectors
Fertiliser production: India’s urea industry relies on LNG as a feedstock; disruptions can force output cuts, affecting agriculture input supply and farmer costs.
City gas distribution & CNG: Cuts in LNG deliveries squeeze supplies for CNG used by vehicles and piped gas in cities, potentially raising retail CNG prices.
What Could Be The Impact On Indian Households?
Even if you aren’t directly buying LNG, the disruptions filter down in tangible ways:
Energy and Fuel Prices Rise
Petrol and diesel costs often rise with crude price spikes. These fuel prices influence everything from the cost of commuting to food transport and wholesale goods prices — making daily expenses higher.
Even if LPG prices (for cooking) are subsidised, higher global energy costs put upward pressure on government budgets and can influence future pricing decisions.
Electricity Bills Could Nudge Higher
Some power plants use imported gas for electricity; higher LNG costs can push up generation costs, which over time may reflect in higher tariffs or greater subsidies needed.
Inflation Hits Household Budgets
Increased transport and energy costs ripple through the economy — food, goods and services become more expensive, tightening disposable incomes for ordinary families.
Indirect Agri-Food Effects
Fertiliser shortages or higher fertiliser costs increase agricultural input prices, which can push up the cost of food items at the grocery store.
What Is The Current Situation In India?
The government has asked people not to panic but conserve gas and energy, as authorities arrange alternative crude and gas supplies.
There are noticeable, localised LPG supply challenges in parts of India as geopolitical tensions depress supply flows (especially through the Strait of Hormuz). Governments are prioritising household LPG supplies, but commercial allocations have been cut and many industries are switching fuels.
The Centre has urged States to expand piped gas (PNG) infrastructure so households can rely less on cylinder supplies in future.
The government says India’s crude oil supplies and refined fuel stocks are secure and sufficient to meet current domestic needs.
At the same time, it has acknowledged the LPG supply situation is concerning (“still worrisome"), while urging calm and actions to manage consumption and distribution.
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