What Happened
- Israel struck Iran's South Pars gas field — the world's largest natural gas reserve — in a major military escalation in the Iran-Israel conflict.
- Iran retaliated by firing missiles at Qatar's Ras Laffan Industrial City, home to the world's largest LNG export facility, causing significant damage, fires, and a complete halt in production at the site.
- The strikes have directly disrupted India's LNG supply: Qatar is India's single largest LNG supplier, and the Ras Laffan attacks have caused an estimated 47.4 MMSCMD supply disruption to India's gas supply chain.
- India's state-owned energy companies are scrambling to secure alternative LNG cargoes in spot markets, but global spot prices have spiked sharply following the attacks.
- The situation compounds India's broader energy vulnerability: India imports over 80% of its crude oil and approximately 50% of its gas — both predominantly from West Asia.
Static Topic Bridges
South Pars Gas Field: The World's Largest Natural Gas Reserve
South Pars is Iran's name for its portion of a transboundary natural gas field shared with Qatar. Qatar calls its portion the North Field (or North Dome). Together, the field is estimated to hold approximately 51 trillion cubic metres of recoverable natural gas — making it the world's largest single natural gas reservoir. The field is located in the Persian Gulf, approximately 100 kilometres off Iran's coast. Iran has developed South Pars in 24 phases, making it the cornerstone of its energy economy, providing over 70% of Iran's total gas production.
- South Pars/North Field total reserves: ~51 trillion cubic metres — roughly one-third of Qatar's total reserves and a significant fraction of Iran's.
- Iran's South Pars produces approximately 560–600 million cubic metres of gas per day at full capacity.
- The field is developed under Iran's Petroleum Contract system; international sanctions have severely limited foreign investment since 2012.
- Qatar's North Field is exclusively developed for LNG export; its current production capacity is approximately 77 million tonnes per annum (MTPA), with expansion to 110 MTPA underway.
Connection to this news: Israel's strike on South Pars targeted the energy heartland of Iran's economy, triggering the retaliatory Ras Laffan attack that directly disrupted India's LNG imports.
Ras Laffan Industrial City and Global LNG Architecture
Ras Laffan Industrial City, located 80 kilometres north of Doha, Qatar, is the world's largest LNG export hub. Built in the 1990s to monetise Qatar's North Field gas reserves, it is home to QatarEnergy's LNG trains, petrochemical plants, and GTL (gas-to-liquid) facilities. Qatar accounts for approximately 20% of global LNG trade — nearly all of it processed at Ras Laffan. Major buyers include Japan, South Korea, China, India, and European nations.
- Ras Laffan processes and exports approximately 77 MTPA of LNG, making it the single largest LNG source in the world.
- Qatar's LNG customers: Japan (~12 MTPA), South Korea (~8 MTPA), China (~7 MTPA), India (~5 MTPA), UK and Europe (~8 MTPA).
- India imports approximately 40–50% of its LNG from Qatar, making Ras Laffan the single largest gas supply facility for India.
- Qatar also supplies roughly one-third of India's LPG (liquefied petroleum gas) imports, critical for domestic cooking fuel.
- An Iranian missile strike caused a fire and production halt at Ras Laffan — Wood Mackenzie analysts projected disruption lasting more than two months.
Connection to this news: The paralysis of Ras Laffan directly translates into India's most acute near-term energy crisis: gas shortages affecting power plants, fertiliser units, and city gas distribution networks.
India's LNG Import Infrastructure and Supply Diversification Challenges
India's LNG import infrastructure consists of several regasification terminals on the west and east coasts. Major terminals include: Dahej (Gujarat, 17.5 MMTPA capacity, operated by Petronet LNG), Hazira (Gujarat, Shell/Total JV), Kochi (Kerala, Petronet LNG), Ennore (Tamil Nadu, IOC), and Mundra (Gujarat). India's total LNG import capacity is approximately 47.5 MMTPA, but actual imports depend on global spot prices and long-term contracts.
- Petronet LNG has a long-term contract with QatarEnergy for 7.5 MMTPA at Dahej terminal — India's largest long-term LNG supply agreement.
- India also has LNG contracts with the US (Sabine Pass, Freeport), Australia (Gorgon), and Russia (Sakhalin-1).
- Spot LNG markets spiked immediately following the Ras Laffan attack, with Asian spot prices reaching $20–25/MMBtu (compared to ~$10–12/MMBtu before the conflict).
- India's alternative LNG sources — US, Australia — involve longer shipping distances (30–45 additional days via Cape of Good Hope) if Strait of Hormuz routes are blocked.
- India's strategic gas reserves are minimal compared to crude oil SPR — there is no gas equivalent of the strategic petroleum reserve.
Connection to this news: India's heavy dependence on Qatari LNG through long-term contracts — and the absence of a gas strategic reserve — means that the Ras Laffan disruption creates an immediate, tangible energy supply crisis rather than a manageable price shock.
Key Facts & Data
- South Pars/North Field total reserves: ~51 trillion cubic metres (world's largest).
- Iran's South Pars gas production: ~560–600 million cubic metres/day at full capacity.
- Ras Laffan LNG export capacity: ~77 MTPA (~20% of global LNG trade).
- India's LNG imports from Qatar: ~40–50% of total LNG imports.
- India's LPG imports from Qatar: ~one-third of total LPG imports.
- Supply disruption caused: 47.4 MMSCMD (millions of standard cubic metres per day).
- India's total LNG regasification capacity: ~47.5 MMTPA.
- Petronet LNG long-term Qatar contract: 7.5 MMTPA (Dahej).
- Asian spot LNG price spike: $20–25/MMBtu (from ~$10–12/MMBtu pre-conflict).
- India's oil import dependence: over 80% of consumption; gas import dependence: ~50%.
- Brent crude peak during 2026 crisis: $126/barrel.