Qatar shuts LNG output; supplies to India hit, city gas sector flags crisis

NEW DELHI: (Mar 4) Qatar has halted liquefied natural gas (LNG) production after its facilities came under attack amid the ongoing West Asia conflict, disrupting supplies to India and squeezing feedstock availability for key domestic sectors.

India, which depends on long-term LNG contracts with Qatar for a significant share of its gas needs, has seen a temporary suspension of cargoes, leading to supply cuts up to 40 per cent for a range of industrial consumers and city gas distribution (CGD) companies.

While some industrial users can switch to alternative - though costlier - fuels, the CNG-retailing city gas sector has warned of severe stress. CGD operators said replacing contracted Qatari volumes with spot LNG priced at more than double the contracted rate could erode CNG's price advantage and result in a permanent shift of customers to electric vehicles.