Several Indian companies have recently limited the supply of natural gas, especially to the fertilizer sector, citing a force majeure due to rising tensions in the Middle East. This situation has arisen from airstrikes involving the US and Israel, which have disrupted fuel shipments in the region, significantly impacting India’s main source of liquefied natural gas (LNG)—Qatar.
Sources indicate that some fertilizer producers, like the Indian Farmers Fertiliser Cooperative Ltd and Kribhco Fertilizers Ltd, are already experiencing production delays. Gujarat Gas Ltd announced on Thursday that it would restrict gas supplies to industries after declaring a force majeure. The company primarily sources its gas from Qatar and Abu Dhabi National Oil Co.
In a similar move, Petronet LNG Ltd issued a force majeure notice to its supplier, QatarEnergy, due to three LNG tankers being unable to reach their loading port. This has led GAIL (India) Ltd and Indian Oil Corp to reduce gas supplies to various industries. QatarEnergy, in response, has also communicated potential force majeure conditions due to the unrest.
While industrial gas supplies are being curtailed, gas is still flowing to households and the automotive sector—for now. The Indian government reports that in the fiscal year 2024/25, India imported 27 million tonnes of LNG, which constitutes about half of its total gas consumption.
The current crisis affects logistical routes as well. The Strait of Hormuz, a vital shipping lane that accounts for about one-fifth of the world’s oil and significant amounts of LNG, has seen transit nearly stop as vessels are targeted in the conflict.
Experts warn that if these tensions continue, they could lead to extended shortages not just in industrial sectors but eventually in domestic supplies as well. Historical data shows that similar conflicts have led to lasting disruptions in regional energy supplies. It’s essential to monitor ongoing developments in the Middle East, as these factors could have far-reaching implications for industries reliant on natural gas.
For more detailed analysis, check the International Energy Agency or recent studies on global energy supply chains.
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