QatarEnergy, the world’s largest LNG company and a major supplier of liquefied natural gas to India, on Monday announced that it has halted LNG production following Iranian drone attacks on its facilities. In a press statement, the company said it would continue to communicate the latest available information to stakeholders.
Earlier, Qatar’s Defence Ministry said the country was attacked by two drones launched from Iran. A ministry spokesperson said one drone targeted a water tank at a power plant in Mesaieed Industrial City, while the other struck an energy facility in Ras Laffan Industrial City operated by QatarEnergy.
Qatar is India’s largest LNG supplier, with annual exports of around 11.4 million tonne (MT), accounting for over 40% of New Delhi’s total LNG imports.
“Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products. QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the company said in a press note.
This marks the second major oil and gas infrastructure disruption linked to the escalating Iran–Israel conflict in the region. On Monday, Saudi Aramco’s Ras Tanura oil refinery announced it was temporarily shutting down certain units after a fire broke out following a drone attack.
QatarEnergy has signed a 20-year agreement with Petronet LNG Limited for the supply of 7.5 million tonnes per annum (mtpa) of LNG. Under the deal, beginning May 2028, QatarEnergy’s LNG fleet will deliver the contracted volumes to Indian terminals. In 2025, QatarEnergy also signed a 17-year sales and purchase agreement (SPA) with Gujarat State Petroleum Corporation to supply up to 1 million tonnes of LNG annually to India.
Meanwhile, Indian oil marketing companies are planning to buy Russian crude amassed in floating storage in Asia as the situation in West Asia escalates. According to a report, officials of the Petroleum Ministry and oil marketing companies have drawn up contingency plans for a crisis in Iran that has all but stopped flows through the Strait of Hormuz, a major global chokepoint.
It is believed that oil ministry officials are now pushing the Ministry of External Affairs to seek some room for manoeuvre from the United States to import Russian crude. As of late last week, there were 9.5 million barrels of Russian oil sitting in Asian waters.
Moreover, India has other options, including increasing supplies from Russia that follow the Red Sea route. The report also noted fast-tracking supplies from Venezuela and pushing domestic producers to raise output.
In case of further escalation, the government may also consider curbing refined fuel exports to ensure adequate supply for domestic consumers. It can prioritise household gas and piped supplies, potentially directing industrial users to switch fuels. The government may also ask private sector giant Reliance Industries Ltd to divert more fuel to the domestic market, while other refiners tweak output to maximise liquefied petroleum gas production at the expense of products such as naphtha.
India can also tap its strategic petroleum reserves and push domestic producers to raise output, the people said, asking not to be named as the discussions are not public.