By Admin 
The effect of increasing tension in West Asia is now visible on India’s energy system as well. After the Iran crisis, the movement of ships in the Strait of Hormuz was affected and due to stoppage of LNG production in Qatar, India’s natural gas supply chain has suffered a major blow. Many big gas companies of the country have been affected by this situation, including Petronet LNG, GAIL, Indraprastha Gas Limited (IGL), Mahanagar Gas Limited (MGL), Gujarat State Petronet Limited (GSPL) and Aegis Logistics.
This crisis is not limited to just companies but it can affect fertilizer production, industries, electricity and the kitchens of common people. First understand how India’s gas supply chain works. The supply of natural gas in India runs through a long international chain. Usually, LNG (Liquefied Natural Gas) is loaded in ships from Ras Laffan in Qatar and reaches India after crossing the Strait of Hormuz.
In India, it is mainly unloaded at the LNG terminals at Dahej in Gujarat and Kochi in Kerala, which are operated by Petronet LNG. Dahej terminal has a capacity of about 17.5 million tonnes per annum, while Kochi terminal has a capacity of about 5 million tonnes per annum. LNG is kept in liquid form at -162 degrees Celsius and after reaching India, it is converted into gas again at the terminals. This process is called regasification. After this it is sent to the pipeline network in the form of RLNG.
GAIL’s pipeline
In India, GAIL mainly does the work of delivering gas to the entire country. The company has about 18,000 km long pipeline network and its share in the gas transmission market is about 65 percent. The most important is Hazira-Vijaypur-Jagdishpur, whose length is about 2887 kilometers and it was commissioned in 1989. This pipeline starts from Hazira in Gujarat and goes to Jagdishpur in Uttar Pradesh via Vijaipur in Madhya Pradesh and provides gas to large parts of North India like Delhi, Uttar Pradesh, Rajasthan, Haryana and Punjab.
The gas coming from Dahej LNG terminal reaches the HVJ network through the Dahej-Bijapur pipeline. Its length is about 610 kilometers and capacity is about 23.9 mmscmd, that is, the capacity of this pipeline is to carry about 24 million cubic meters of gas daily. Apart from this, Jagdishpur-Haldia-Bokaro-Dhamra Pipeline i.e. Urja Ganga Project has been built to connect eastern India with gas, whose length is about 3,306 kilometers and it transports gas to Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.
Where did GAIL’s gas come from and what is the situation now?
India’s largest gas transmission and trading company GAIL has been bringing its LNG supplies mainly from Qatar and America. Gas from Qatar came through Petronet LNG, which has a long-term contract with Qatar Energy for about 8.5 million tonnes per year. This LNG was transported from Ras Laffan in Qatar to Dahej Terminal in Gujarat through ships and then supplied to the entire country through GAIL’s pipeline network. Apart from this, GAIL also has LNG contracts from America’s Sabine Pass and Co Point, from which ships come to India via Suez Canal.
In the current crisis, due to increasing security risks in the Strait of Hormuz, the LNG supply coming from Qatar has almost stopped due to which the Qatari LNG allocation to GAIL has become zero. At present, the only relief for the company is the supply coming from America which does not pass through the Hormuz route and is reaching India through the Suez Canal.
When the Strait of Hormuz closed on 28 February 2026. The largest part of GAIL’s gas supply stopped in one fell swoop. Petronet LNG clearly stated in the BSE filing that “Due to the current security situation and material risk to maritime navigation, all three Qatar tankers, Disha, Rahi and Asim, are not able to pass safely through the Strait of Hormuz. These three ships used to bring about 65,000 to 75,000 tonnes of LNG in every trip from Qatar’s Ras Laffan terminal to Dahej and now all three are standing outside the strait. Are.
Due to this, 40-45 percent of India’s annual LNG import i.e. 10 to 11 MTPA supply was stopped in one go. On the other hand, GAIL’s own four ships GAIL Bhuvan, GAIL Urja, Grace Emilia and the fourth carrier of CoolCo come via the Suez Canal from Sabine Pass and Cove Point in the US. That’s why they are running now. That means it is not possible to get any immediate relief. It is not so easy to replace Qatar’s three ships that used to deliver within hours. The Iran war broke the weak link in GAIL’s supply chain which was bearing the maximum burden.
What is India’s dependence?
India is largely dependent on imports for its energy needs. According to estimates, about 50 to 60 percent of India’s LNG supply comes through the same sea route which passes through the Strait of Hormuz. In February 2026, India had imported about 1.86 million tonnes of LNG. Out of which about 41.2 percent came from Qatar alone. Petronet LNG has a long-term contract of 8.5 million tonnes per annum with Qatar Energy, which is considered an important source of India’s gas supply.
This entire supply chain runs only when the LNG coming out of Qatar’s gas fields comes to India in ships. From ship to terminal, from terminal to pipeline and from pipeline to cities. When the beginning of this chain, i.e. the movement of ships, is affected, it gradually impacts the entire energy system. This is the reason why the crisis arising in West Asia can affect gas supply, industry, CNG and domestic PNG in India.
Now if you see where gas is used here, will you understand its impact?
Natural gas is used in many important sectors in India. According to PNGRB data, the country consumed an average of about 187 MMSCMD gas during 2023-24. The largest share in this is from the fertilizer industry where about 58 MMSCMD gas is used.
Natural gas is the most important raw material in making urea and gas constitutes about 70 to 80 percent of its total production cost. After this comes the city gas distribution sector, where about 37 MMSCMD gas is used in CNG vehicles and domestic PNG. About 25.2 MMSCMD gas is used for power generation while about 22 MMSCMD gas is used in refinery and petrochemical industries. Apart from this, ceramic, glass, steel, tire and chemical industries are also largely dependent on natural gas.
How does gas reach common people?
Gas does not go directly to the common people through the pipeline network, rather it is delivered to the final consumers through city gas distribution companies. In Delhi-NCR, this work is done by Indraprastha Gas Limited (IGL), which has about 976 CNG stations and more than 33 lakh houses have PNG connections. Gas in Mumbai, Thane and Raigarh areas is supplied by Mahanagar Gas Limited (MGL), about 70 to 75 percent of whose revenue comes from CNG. A major portion of gas transmission in Gujarat is through GSPL’s network, while Aegis Logistics handles terminal operations and bulk handling of LNG and LPG.
Impact on agriculture and industry
Interruption in gas supply can directly impact the fertilizer industry. According to reports, due to more than 10 percent reduction in gas availability, some urea plants have reduced production by about 7 to 8 percent. However, by the end of February 2026, there is a stock of about 55 lakh tonnes of urea in the country, which is more than last year. Therefore, there is no immediate crisis situation, but if this situation continues for a long time, India may have to import expensive urea from the international market.
what could happen next
Energy experts believe that if tension in West Asia continues for a long time, India may have to prioritize gas supply. In such a situation, first priority will be given to the supply of domestic PNG and CNG while the gas supply to industries can be reduced. The prices of LNG in the international market have already increased rapidly to about $ 23 per MMBtu.
It is clear from this entire situation that the entire supply chain originating from Qatar’s gas field and reaching India’s LNG terminal pipeline network and CNG station is interconnected. If there is a disruption anywhere in this chain, its impact can directly reach the kitchens of common people, the fuel of vehicles and the fertilizers of farmers.
Where is it being affected in India?
fertilizer sector
The biggest use of natural gas in India is in the fertilizer industry. About 58 mmscmd of the total daily gas consumption in the country goes in making urea. Gas constitutes about 70–80 percent of the production cost of urea. Due to reduced gas supply, some urea plants have started reducing production by 7–8%. This can have a direct impact on farming and availability of fertilizers.
CNG and Domestic PNG (City Gas Distribution)
In cities like Delhi, Mumbai, Ahmedabad, lakhs of vehicles run on CNG and crores of people cook food with PNG at home. About 37 mmscmd gas is consumed in this sector. Reduction or increase in gas supply can directly impact the price of CNG and domestic PNG bills.
Power Generation (Power Sector)
Gas based power plants use about 25.2 mmscmd of gas daily. Although the share of electricity generated from gas in India is about 2%, but these plants play an important role at times of peak demand. The production of these plants may be affected due to shortage of gas.
Refinery and petrochemical industry
Oil refineries and petrochemical companies use gas as both fuel and raw material. Products like petrol, diesel, plastic and synthetic fiber are made from it. The cost of gas can also affect the cost of these products.
Hotel, Restaurant and Commercial Sector
PNG gas is used in large quantities in hotels, restaurants, bakeries, catering units and hospitals. Due to reduction in gas supply or increase in price, their operating costs may increase, the impact of which may reach the prices of food and drinks.
Ceramic and Glass Industry
Industries manufacturing ceramic tiles, sanitary ware and glass in Gujarat and Rajasthan are highly dependent on natural gas. Due to disruption in gas supply, there is a possibility of reduction in production or increase in costs in these areas.
Steel, tyre, paint and chemical industries
These sectors are direct or indirect large consumers of gas. As gas becomes expensive, its input cost increases, which ultimately reaches the consumer in the form of expensive goods.