India and Europe face worsening fuel shortages as Gulf gas supplies face disruptions amid escalating tensions in the Middle East. The crisis has been intensified by Qatar’s suspension of liquefied natural gas (LNG) production following a drone attack, which has sent global gas prices soaring and forced major energy companies to adjust their supply strategies. Industry insiders revealed that India’s top LNG importer, Petronet LNG Ltd, has notified state-owned gas marketing company GAIL (India) and other firms about reduced supply volumes. Cuts range from 10 to 30 percent, according to sources, as companies seek to avoid penalties under contractual terms. GAIL and Indian Oil Corp (IOC) informed customers of the supply reductions late Monday, prompting adjustments in their operations. India, the world’s fourth-largest LNG buyer, relies heavily on Middle Eastern imports, with Abu Dhabi National Oil Company and Qatar being its primary suppliers. The country’s reliance on these sources has now been tested as QatarEnergy, the world’s largest LNG producer, halted production after attacks on its facilities in Mesaieed Industrial City and Ras Laffan. The company declared force majeure, citing extraordinary circumstances beyond its control, to exempt itself from contractual obligations. The disruption has exacerbated global LNG supply shortages, with Qatar’s exports accounting for 20 percent of the global market. Reduced availability has driven prices to record highs, while spot tenders are being issued by companies like IOC, GAIL, and Petronet LNG to mitigate the shortfall. However, rising freight and insurance costs have further strained the market. Meanwhile, European gas prices have surged, with the Dutch TTF benchmark contract jumping over 33 percent on Tuesday, following a nearly 40 percent spike the previous day.#qatar #qatarenergy #indian_oil_corp #gail_india #petronet_lng_ltd
