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Strait of Hormuz Reopens: India's Gas Supply Stabilizes
5 Jul
Summary
- India withdrew a March 2026 order regulating natural gas supply.
- Middle East ceasefire allows LNG shipments through Strait of Hormuz.
- Qatar supplies over 41% of India's LNG imports.
The Indian government has rescinded its March 2026 order regulating natural gas supply, citing the resolution of the Middle East conflict. This order was initially put in place due to disruptions in liquefied natural gas (LNG) shipments through the Strait of Hormuz, which significantly impacted India's energy imports.
The conflict's conclusion has led to a ceasefire, permitting the resumption of sea traffic through the Strait of Hormuz. This development is a significant relief for India, which depends heavily on imported LNG. Qatar alone accounts for approximately 41.4% of India's LNG imports, with a substantial portion sourced from Ras Laffan.
Following the disruptions and suppliers invoking the force majeure clause, India had invoked emergency powers to ensure supply to priority sectors. Measures included guaranteeing 100% natural gas supply for domestic piped connections and CNG, while managing allocations for the fertilizer sector. The normalization of energy supply is further indicated by recent relaxations on fuel sales and LPG prices.
