Iran‑Israel Conflict Hits World’s Largest LNG Plant in Qatar; What It Means for India’s Energy Supply?

Iranian missiles struck the Ras Laffan Industrial City in Qatar, home to the world's largest liquefied natural gas (LNG) facility. The attack came hours after Israel targeted the South Pars gas field in the Persian Gulf, which is shared between Iran and Qatar. The Ras Laffan LNG plant, which previously accounted for nearly a fifth of global LNG supply, faced partial production disruption following the strike, with four incoming missiles intercepted before impact.

Iran-Israel Conflict: South Pars Gas Field, Ras Laffan Industrial City Striked; Habshan Gas Facility Affected

Authorities reported that falling debris from the intercepted missiles also affected Abu Dhabi's Habshan gas facilities, prompting a temporary shutdown. The ongoing escalation in the Middle East has heightened concerns over global energy supply and regional stability.

World's Largest LNG Facility: Ras Laffan Industrial City in Qatar

Ras Laffan Industrial City is Qatar's primary hub for LNG production and processing, serving as a crucial node in the global energy supply chain. The facility produces a significant portion of QatarEnergy's LNG output, which stood at around 77 million tonnes per annum and was under expansion as per Reuters report.

In 2025, QatarEnergy exported approximately 81 million tonnes of LNG worldwide, supplying critical markets across Asia, Europe, and the Middle East.

The city's LNG output plays a central role in global energy security, and any disruption can ripple across international markets, affecting energy costs, trade flows, and industrial fuel availability.

Strikes Impact on India's LNG Imports

India is highly dependent on LNG imports to meet its energy needs. According to Commerce Ministry data, the country imported 27 million tonnes of LNG in 2024-25, of which 11.2 million tonnes-or 41.4%-originated from Qatar. The Ras Laffan strike therefore threatens a substantial portion of India's LNG supply, which is crucial for fertiliser production, city gas distribution, and industrial energy requirements.

"India's dependence on LNG imports makes it particularly sensitive to such disruptions. Qatar has long been a key supplier, supporting critical sectors including fertilisers, city gas distribution, and industrial fuel requirements. Any constraint in supply tightens global availability and pushes buyers towards expensive spot markets, increasing cost pressures for businesses that rely on continuous energy access," said Vishal Khalde, Founder & CEO of Blue Planet Biofuels.

Corporate Response: De-risking Energy Dependence

Businesses in India are increasingly reconsidering their energy procurement strategies in light of global disruptions. Companies are moving from short-term sourcing towards long-term risk management, combining immediate supply solutions with strategies to reduce reliance on imported fuels.

This shift is visible in the growing adoption of domestic energy solutions, including compressed biogas (CBG) and biogas, which can partially substitute LNG, especially in industrial and commercial applications.

What Are Alternative Fuels? Can CBG & Biogas Help India?

CBG and biogas offer domestic, decentralized alternatives to imported LNG. Produced from agricultural residue, municipal waste, and food waste, these fuels are not exposed to global price volatility or geopolitical risks.

"Alternative fuels like CBG and biogas are no longer just part of the sustainability narrative-they are becoming central to energy security. By investing in domestic, distributed, and diversified energy solutions, India has the opportunity to reduce its exposure to global volatility while strengthening its long-term economic and environmental stability," Khalde added.

Even a partial substitution of 10-15% of energy demand with CBG can reduce LNG import dependency, enhance price stability, and create additional income streams for farmers through the utilisation of agricultural residue. CBG also generates organic manure as a byproduct, further supporting sustainable agricultural practices.

Despite these advantages, India faces structural hurdles in scaling bioenergy solutions. Nearly 87-88% of the country's energy requirements are still met through imports, and many domestic projects focus on low-cost execution rather than performance-based outcomes. This can lead to inefficiencies, underperformance, and reduced credibility in the sector.

"Encouraging new technologies through pilot projects and expanding qualification criteria beyond legacy experience will be critical for sectoral growth. Policy support must extend beyond intent into execution to build a robust domestic fuel ecosystem," Khalde highlighted the need for a shift towards output-driven frameworks.

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