India faces 1.5 mt/month LNG shortfall as Hormuz closure hits Qatar imports

The Strait of Hormuz disruption has cut off nearly half of India's Qatari LNG supply, forcing a scramble for alternative cargoes and raising procurement costs for domestic utilities.

By Handelsavisen Newsroom · Automated 2026-07-16 13:49 UTC · 1 min read Last updated: 2026-07-16 18:37 UTC

India is confronting a severe natural gas supply deficit, with potential curtailments reaching up to 1.5 million tonnes per month.

The shortfall stems directly from the closure of the Strait of Hormuz, which has blocked access to 46% of the country's liquefied natural gas (LNG) imports from Qatar.

This disruption has triggered a broader supply crisis across South Asia, leaving utilities and industrial consumers grappling with acute shortages.

The immediate market implication is a sharp repricing of risk in Asian LNG markets.

With a significant portion of supply physically inaccessible, buyers are competing for available cargoes from alternative sources, driving up spot prices.

Indian natural gas companies, including GAIL and Petronet LNG, are facing elevated procurement costs and logistical challenges as they attempt to secure replacement volumes.