India Cuts Gas Supply to Industries Amid Qatar Outage

Global Energy Market Update

Tighter Supply in the Middle East Impacts Indian LNG Imports

Indian companies, including Petronet LNG Ltd and GAIL (India), have reduced natural gas supplies to industries in anticipation of tighter supply from the Middle East. This move comes after Qatar halted its liquefied natural gas production on Monday in response to ongoing conflicts in the region.

The production halt by Qatar, a top producer of LNG, has driven up global energy prices and shipping costs. India, the world's fourth-largest buyer of LNG, relies heavily on the Middle East for its imports. Petronet LNG Ltd, the top LNG importer, has informed GAIL (India) and other companies about lower supplies.

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The gas supply cuts range from 10% to 30%, with the cuts set at minimum lifting quantities to shield suppliers from contractual penalties. GAIL and Indian Oil Corp have informed customers of the gas supply cut, and companies are planning to issue spot tenders to make up for the LNG shortfall.

Key Figures:

• 10% to 30%: Range of gas supply cuts
• Qatar: Top producer of LNG
• India: World's fourth-largest buyer of LNG
• Petronet LNG Ltd: Top LNG importer
• GAIL (India): Top gas marketing company
• Indian Oil Corp: Major oil and gas company