India slashes gas supply to industries – Reuters

The reported move by New Delhi comes in anticipation of supply constraints after Qatar halted LNG production

India has cut natural gas supplies to industries in anticipation of supply constraints, Reuters reported on Tuesday.

The move was made after top LNG producer Qatar halted production, according to sources quoted by the agency.

QatarEnergy, the world’s largest LNG producer, said in a statement on Monday that it had ceased production after drone attacks on its operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City.

At the same time, LNG tankers have stopped transiting the Strait of Hormuz, which carries a fifth of global oil and gas shipments. Iran has threatened to target ships passing through the critical maritime choke point amid Tehran’s conflict with the US and Israel.

Across the Gulf, most energy sites have also been hit or temporarily shut, with producers suspending parts of their operations as a precaution. Pipeline alternatives are limited and shipping routes through the area are stalling, as traders price in the risk that supply lines could remain disrupted for an extended period.

India’s Oil Ministry said on Monday that New Delhi will ensure energy availability amid the escalating crisis in the Middle East.

Experts interviewed by RT suggest that the latest crisis in the region – triggered by US and Israeli strikes on Iran on Saturday, which killed Supreme Leader Ali Khamenei – is likely to impact India as its major supplies of oil and liquefied natural gas (LNG) are routed through Middle East.

India depends on imports for 85% of its oil and nearly half of its natural gas needs, with about 50% of India’s oil supplies and 55% of LNG routed through the Strait of Hormuz. 

European benchmark gas futures surged by around 50% on Monday – their biggest single-day move since March 2022 – after LNG tankers largely stopped transiting the strait.