QatarEnergy has declared force majeure on liquefied natural gas (LNG) deliveries to affected buyers after halting production, following Iranian strikes on its large Ras Laffan complex.
The move formalises the suspension of cargo deliveries from the world’s largest LNG exporter at a time of escalating attacks on regional energy infrastructure by Iran. European gas prices rose by 52 per cent following the Iranian strike on Ras Laffan, marking the largest jump in price since Russia's invasion of Ukraine in 2022.
Force majeure clauses allow suppliers to suspend contractual obligations without penalty when events beyond their control prevent delivery.
Doha accounts for about 20 per cent of global LNG supply, with an annual production of around 77 million tonnes per year. Most of QatarEnergy's supplies are delivered under long-term contracts to Asian buyers.
Sustained cuts immediately affect spot markets, freight rates and the petrochemicals industry.
Qatar also shut down its aluminium production, which relies on gas supply and halted petrochemicals output. The impact of the force majeure will be particularly acute for India, which relies on Qatar as its single largest LNG supplier.
Pre-war import data from Kpler shows the scale of exposure:
- In January 2026, India imported 2.58 million tonnes of LNG, of which 1.06 million tonnes came from Qatar, equal to 40.9 per cent of total imports
- In February 2026, just before the production halt, India imported 1.86 million tonnes, of which 0.76 million tonnes were from Qatar – a 41.2 per cent share.
- Across 2025, India averaged 2.08 million tonnes per month, with Qatar supplying 0.95 million tonnes, or 45.6 per cent, of total imports.
Nearly half of India’s LNG intake has been anchored to Qatari supply. Many of those volumes are tied to long-term contracts with importers, including Petronet LNG, which operates large receiving terminals along India’s west coast. Reports suggest India has instructed its industry to cut gas supply by 10 to 20 per cent following the loss of Qatari supply.
Unlike Saudi Arabia and other Gulf producers, which can export crude through Red Sea terminals using pipelines, Qatar's LNG only moves through the Strait of Hormuz. Traffic along the strait has come to a standstill following attacks on tankers transiting the narrow waterway. According to S&P Global, Qatar accounted for 93 per cent of all LNG traffic through the strait, with the UAE accounting for the remainder.
The global LNG markets operate with limited spare capacity. Other suppliers, such as the US, which is the largest producer of natural gas and Australia, cannot fully offset a prolonged loss of Qatari supply.
India will look to increase spot cargoes from the US and secure more long-term agreements from the UAE, Oman and some African suppliers.
