Middle East War Signals Potential Impact on India’s Energy Supply

Kathmandu — The ongoing war in the Middle East has begun to show signs of directly affecting India’s energy supply. Petronet LNG, India’s largest importer of liquefied natural gas (LNG), has warned that some operations could be disrupted, raising concerns about tighter gas supply in the world’s most populous nation.

According to a notice issued by the company to the stock exchange late Tuesday night, vessels may not be able to safely reach QatarEnergy’s loading port at Ras Laffan through the Strait of Hormuz. QatarEnergy, a key supplier for the Indian market, has already announced a temporary halt in LNG production earlier this week.

In response to the situation, Petronet LNG said it has sent a “force majeure” notice to QatarEnergy regarding three of its tankers—Disha, Rahi, and Aseem. The company also confirmed that it has received a similar notice from QatarEnergy. Additionally, Petronet LNG has informed its domestic clients, including GAIL (India), Indian Oil Corporation, and Bharat Petroleum Corporation, about the potential disruption.

The company stated that it is currently unable to estimate the exact scale of the possible impact. However, local media reports indicate that some domestic gas suppliers have already warned industrial customers about possible minor cuts in supply.

India meets a large portion of its energy needs through imported oil and gas. For this reason, the Indian government warned on Tuesday that if the conflict continues for a prolonged period, it could lead to “serious consequences” for the economy. However, the Petroleum Ministry has said that the country’s reserves remain “adequate” and that phased measures could be taken if necessary.

According to The Hindu daily, India currently has crude oil reserves sufficient for about 25 days and LNG supplies that could last for the next two to three weeks. Analysts, however, warn that rising crude oil prices could pose significant challenges for South Asian economies.

Analysts from BMI, a unit of Fitch Solutions, noted that Sri Lanka could face the biggest economic impact due to its existing external financial pressures. They also warned that India, given its high dependence on crude oil imports, could face additional economic strain.

Overall, the growing instability in the Middle East is beginning to show clear signs of affecting South Asian economies through the global energy market.