India, Europe feel fuel crunch as Gulf gas supplies disrupted amid war | Oil and Gas News
Qatar Halts LNG Production Amid Rising Global Gas Prices
Published March 3, 2026
Qatar has suspended its liquefied natural gas (LNG) production as global gas prices escalate, particularly affecting India and Europe. The decision comes in the wake of Iranian drone attacks that targeted infrastructure in Qatar, prompting the state-owned QatarEnergy to declare a force majeure, which exempts the company from fulfilling certain contractual obligations due to extraordinary circumstances.
The immediate impact has been a reduction in LNG supplies to Indian industries, with major suppliers such as Petronet LNG Ltd informing clients, including GAIL (India), of impending lower gas deliveries. Supply cuts reportedly range from 10% to 30%, as confirmed by sources in the industry. State-owned GAIL and Indian Oil Corporation (IOC) informed customers about these adjustments late on Monday.
As India is the world’s fourth-largest LNG buyer, heavily reliant on Middle Eastern imports, the shortages have raised concerns. India stands as the top LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG. In response to the anticipated shortfall, companies including IOC, GAIL, and Petronet LNG are considering issuing spot tenders; however, they face challenges as spot prices, along with freight and insurance costs, have surged.
The halting of Qatar’s LNG production is expected to tighten global gas supplies. Qatar’s exports account for approximately 20% of the global market, and fewer products reaching consumers could lead to significant price increases.
European gas prices have already surged following the outbreak of military conflict in the region. The Dutch TTF natural gas contract, a key European benchmark, rose more than 33% shortly after the production suspension and had spiked almost 40% the previous day.
As geopolitical tensions continue to escalate, European stock markets have also seen declines, with the potential for prolonged conflict in the Middle East looming over global energy markets. Statements from U.S. leadership indicate a readiness to extend military operations in the region as the situation develops.
The repercussions of these developments highlight the fragile state of global energy supply and pricing, with analysts warning of increasing volatility in the coming weeks.
