PNG, LPG & Ras Laffan: What it means!

Last updated: March 26, 2026: India is navigating what the International Energy Agency has called the largest energy supply disruption in the history of the global oil market. The immediate threat to Indian households is being managed. The geopolitical situation that created it is not close to resolution.

17% Qatar LNG capacity sidelined

$20 Bn Annual revenue loss — QatarEnergy

3–5 yrs Repair timeline — LNG Trains 4 & 6

Zero India PNG & CNG supply cut

The Ras Laffan Strikes: As it happened

The crisis began on March 2, 2026, when Iranian drones struck QatarEnergy’s operating facilities in Ras Laffan Industrial City and a water tank at a power plant in Mesaieed Industrial City. QatarEnergy immediately ceased all LNG production as a precautionary measure. European benchmark Dutch TTF gas prices surged almost 50% and Asian LNG spot prices jumped approximately 39% within hours.

On March 18 and in the early hours of March 19, Iran retaliated against Qatar’s Ras Laffan Industrial City with ballistic missiles following Israel’s strike on Iran’s South Pars gas field. QatarEnergy issued a formal statement confirming damage to LNG Trains 4 and 6, and to the Pearl GTL facility operated by Shell.

QatarEnergy’s full official statement, issued by Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al-Kaabi, confirmed the following: The attacks damaged LNG Trains 4 and 6, which together represent 12.8 million tonnes per annum (MTPA) of production — approximately 17% of Qatar’s LNG exports. Train 4 is a joint venture between QatarEnergy (66%) and ExxonMobil (34%). Train 6 is a joint venture between QatarEnergy (70%) and ExxonMobil (30%). The damaged units cost approximately $26 billion to build. Annual revenue losses are estimated at $20 billion. Repairs are expected to take three to five years. Force majeure has been declared on long-term LNG contracts with buyers in China, South Korea, Italy, and Belgium for up to five years. The Pearl GTL facility, operated by Shell, had one of its two trains damaged and is expected to be offline for a minimum of one year. Associated losses include: condensates 18.6 million barrels (approximately 24% of Qatar’s exports); LPG 1.281 million tonnes (approximately 13%); naphtha 0.594 million tonnes (approximately 6%); sulphur 0.18 million tonnes (approximately 6%); helium 309.54 million cubic feet annually (approximately 14%). For production to restart, Al-Kaabi stated: “First we need hostilities to cease.”

Qatar accounts for approximately 40% of India’s LNG imports. Petronet LNG has had a long-term agreement with QatarEnergy since 1999 for up to 7.5 million tonnes per annum, extended in 2024 until 2048. The Gujarat State Petroleum Corporation signed a 17-year agreement with QatarEnergy in October 2025 for up to one million tonne per annum. Both agreements are now subject to force majeure.

" QatarEnergy CEO: "The damage sustained by the LNG facilities will take between three to five years to repair. The impact is on China, South Korea, Italy and Belgium." Force majeure declared on long-term contracts for up to five years. "

Qatar accounts for nearly 20% of global LNG supply, according to the US Energy Information Administration. The IEA warned on March 20 that the West Asia war is “creating the largest supply disruption in the history of the global oil market.”

➤ Related: India’s diplomatic position in the West Asia War: The Middle Path

The Geopolitical Reality as of March 21: No Ceasefire in Sight

On March 20, speaking to reporters outside the White House, Trump stated: “We can have dialogue, but I don’t want to do a ceasefire. You don’t do a ceasefire when you’re literally obliterating the other side.” He added: “All they’re doing is blocking up the Strait. But from a military standpoint, they’re finished.” He said countries like South Korea, Japan, and China will “have to” help secure the Strait of Hormuz. Asked if Israel would agree to end the war when the US decides to do so, Trump responded: “I think so, yeah.” Later on March 20, Trump posted on Truth Social that the US was “getting very close to meeting our objectives” and was considering “winding down our great military efforts” with respect to Iran. US forces struck Kharg Island on March 20, which Trump said had “totally obliterated” all military targets on the island.

Iran’s Foreign Minister Abbas Araghchi stated on March 17: “We did not send any message and did not request a ceasefire, but this war must end in a way that it will not be repeated.” Iran’s new supreme leader issued a defiant statement. The IRGC announced it is continuing to produce missiles and that stockpiles are high. As of March 21, Trump says he does not want a ceasefire; Iran says it has not requested one. There is no active ceasefire negotiation confirmed by any party.

The UK, France, Germany, Italy, the Netherlands, and Japan issued a joint statement saying they are prepared to join “appropriate efforts” to ensure Strait safe passage. This is a conditional, future-tense commitment — not an active military deployment. Germany and Italy have both conditioned any involvement on a post-ceasefire framework and a UN mandate. The UK has separately sent military planners to work with the US on a plan to reopen the Strait. The Strait remains substantially closed to Western commercial shipping as of March 21.

Update — March 23–26, 2026: The ceasefire picture has changed significantly since this article was first published. On March 23, Trump announced on Truth Social that the US and Iran had held "very good and productive conversations regarding a complete and total resolution of our hostilities" and ordered a five-day pause on strikes against Iranian power plants and energy infrastructure, sending oil prices sharply lower. Iran's Foreign Ministry denied any direct talks had taken place, with state-run IRAN newspaper saying Trump's move was "designed to lower energy prices and buy time." The Trump administration subsequently submitted a 15-point ceasefire proposal to Iran through intermediaries. Iran rejected it as "extremely maximalist and unreasonable" and issued its own five-point counter-conditions, which included Iranian control over the Strait of Hormuz, war reparations, and a halt to all aggression against Iran's proxies. Iranian Foreign Minister Araghchi confirmed no direct US-Iran negotiations have taken place — only indirect messages through mediators including Turkey, Egypt, and Oman. The White House Press Secretary stated the US will hit Iran "harder than they have ever been hit before" if talks fail. The five-day pause expires on or around March 28. As of March 26, no ceasefire agreement has been reached and no direct talks are confirmed.

Source: Bloomberg, March 23, 2026; CNBC, March 25, 2026; PBS NewsHour, March 23, 2026; ITV News, March 25, 2026; Al Jazeera, March 23, 2026

Regional Escalation: Kuwait, Iraq, Oman, and the Panama Canal

Iran’s attacks on energy infrastructure have extended well beyond Qatar. Iranian drones struck Kuwait’s Mina Al-Ahmadi and Mina Abdullah oil refineries for the second consecutive day as of March 20, causing fires at both facilities. Iraq suspended operations at its oil terminals. A key oil export terminal in Oman was reportedly evacuated after tankers anchored off Iraq were attacked. Iran called for the evacuation of three major ports in the United Arab Emirates. The Abu Dhabi Habshan gas facilities were shut after being hit by debris from an intercepted strike. These are no longer isolated incidents at a single facility; they represent a sustained campaign against Gulf energy infrastructure across multiple countries simultaneously.

Iran's mission to the United Nations announced on March 25 a formal, public clarification of its passage policy: "Non-hostile vessels, including those belonging to or associated with other States, may — provided that they neither participate in nor support acts of aggression against Iran — benefit from safe passage through the Strait of Hormuz in coordination with competent Iranian authorities." This is Iran's most explicit public statement of its selective passage policy to date. Traffic through the Strait nonetheless remains down approximately 95% from pre-war levels, according to shipbroker Clarksons. Iranian-linked ships continue to move freely; it is Western-flagged and Western-associated commercial shipping that remains effectively blocked.

Source: ITV News, March 25, 2026 (citing Iran UN mission statement); BOE Report / Reuters, March 23, 2026 (citing Clarksons data)

Maritime war risk insurance premiums on Gulf-region tankers have reportedly surged over 1,000%, effectively making commercial shipping through the Strait uninsurable at viable rates. The Strait of Hormuz handles approximately 20% of global petroleum liquids and a proportionate share of global LNG. The Strait’s closure is described by Minister Hardeep Singh Puri as the first such closure in recorded history. The Panama Canal has responded by operating at top capacity, increasing to 36–38 vessels per day, and is preparing to offer one additional slot per day specifically for LNG tankers — up from four LNG slots per month before the war.

India’s Response: What the Government Confirmed on March 20–21

PIB India, March 20, 2026: Refineries nationwide running at full capacity with ample crude oil and LPG stocks. Supply uninterrupted and deliveries regular despite spike in bookings. 93% of LPG bookings are now online with authenticated delivery. PNG actively being promoted as alternative.

Update — March 24, 2026: Prime Minister Narendra Modi addressed the Rajya Sabha directly on March 24, stating: "In the last 11 years, strategic petroleum reserves have been developed to more than 53 lakh metric tonnes, and work is underway to expand them to over 65 lakh metric tonnes. The country is witnessing the results of our efforts. In the past few days, ships carrying crude oil and LPG from several countries have arrived in India. Our efforts in this direction will continue." PM Modi described the closure of the Strait as "unacceptable" and confirmed India's multi-source procurement strategy is active. Indian refineries are currently operating at over 258 million tonnes per annum capacity, with configurations shifted to prioritise LPG production. Approximately 1.1 million migrant workers with Ujjwala connections are receiving priority fuel allocations, with over 25,000 connections of 5kg cylinders distributed in a single 24-hour period.

Source: Organiser, March 24, 2026 (citing PM Modi Rajya Sabha address); PingTV India, March 24, 2026

Joint Secretary Sujata Sharma of the Ministry of Petroleum and Natural Gas confirmed on March 20: “Consumers are being actively encouraged to switch to Piped Natural Gas (PNG) as a cleaner and more reliable energy option.” She confirmed that about 93% of LPG bookings are now completed online with deliveries verified for transparency. She also confirmed that the government has offered states and Union Territories an additional 10% allocation of commercial LPG, conditional on those states committing to reforms that support the transition to PNG.

The legal framework protecting domestic consumers remains unchanged and fully in force. The Natural Gas (Supply Regulation) Order, 2026, issued March 9 under the Essential Commodities Act, 1955, establishes the national priority sequence: domestic PNG to homes and CNG for vehicles at 100%; industrial consumers on the gas grid at approximately 80% of six-month average; fertiliser plants at approximately 70%; refineries and petrochemical units at approximately 65%, with gas redirected to higher-priority sectors. The LPG Control Order of March 8, 2026 directed all refineries to maximise LPG yields from C3 and C4 streams, resulting in a 28% increase in LPG production within five days of the directive.

Consumer prices remain shielded. The PMUY beneficiary price stands at Rs 613 per 14.2 kg cylinder in Delhi, down 32% from July 2023 levels despite Saudi Contract Price rising 41% in the same period. The non-subsidised consumer price is Rs 913 following the Rs 60 adjustment, against a market-determined price of approximately Rs 987. Of the Rs 134 per cylinder adjustment warranted by global market conditions, the government absorbed Rs 74. The effective additional cost for a PMUY household is under 80 paise per day. Rs 30,000 crore OMC compensation has been approved; a separate Rs 17,500 crore OMC support package has also been confirmed. Equivalent LPG prices stand at Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal.

The delivery cycle for domestic LPG cylinders remains 2.5 days from booking to receipt, unchanged from pre-crisis norms. The Delivery Authentication Code (DAC) has been expanded from 50% to 90% coverage. The minimum booking gap has been raised from 21 to 25 days. Hospitals and educational institutions are on uninterrupted priority supply. The Ministry of Environment has advised State Pollution Control Boards to permit biomass, RDF pellets, and kerosene as alternate fuels for the hospitality segment for one month. India maintains approximately 60 days of strategic crude oil reserves.

PNG: 13,700+ New Connections, IGL at Double Installation Capacity

The Government of India confirmed at a high-level inter-ministerial briefing that over 13,700 new PNG connections have been issued since the crisis began in early March. IGL’s Mobile Connect application recorded more than 22,000 new registrations in the first 15 days of March alone — a 14% increase over February. IGL has been supplying gas to more than 15,000 new households as of March 1, and daily installation capacity has scaled from 600–700 connections to 1,300–1,500. An IGL spokesperson confirmed: “The trend suggests that more users are not only downloading the app but also actively signing up, possibly to secure uninterrupted access to cooking gas.” IGL and GAIL Gas are offering free gas worth Rs 500, while other city gas distribution firms are waiving connection charges, to incentivise the LPG-to-PNG switch.

The new LPG (Regulation of Supply and Distribution) Amendment Order, 2026 mandates that no person with a PNG connection shall retain or take refills of domestic LPG cylinders from any government oil company. Such persons are required to immediately surrender their domestic LPG connection. This order is in effect and being enforced.

Supply Arrivals and Diversification: What Is Confirmed

The Shivalik LPG tanker arrived at Mundra Port in Gujarat on March 16, carrying 48,000 metric tonnes of LPG, equivalent to approximately 33 lakh domestic cylinder refills. The Nanda Devi tanker also arrived safely in Gujarat. Two LPG carriers were confirmed to have traversed the Strait of Hormuz with Indian Navy coordination, benefiting from Iran’s declared policy of permitting passage for Indian-flagged vessels. According to ship-tracking data from Kpler, the tanker Aqua Titan, carrying Russian Urals crude, made a sharp course change in the South China Sea and is headed to New Mangalore with an expected arrival of March 21. The Suezmax tanker Zouzou N, carrying Kazakh CPC Blend crude from Russia’s Black Sea port, is signalling Gujarat’s Sikka as its next port with estimated arrival March 25.

India is diversifying procurement across four continents. Minister Puri confirmed LPG and LNG cargoes are being secured from the United States, Norway, Canada, Algeria, and Russia. The US LPG supply agreement for 2.2 million tonnes per annum — concluded in early 2026 — is now an active supply resilience buffer, providing approximately 10% of India’s annual LPG requirement from a non-Gulf source. Underground LPG storage caverns at Mangaluru and Visakhapatnam are being fast-tracked to a combined 140,000 metric tonnes. The India–Iran bilateral engagement to secure Indian ship passage through the Strait continues, with External Affairs Ministry spokesperson Randhir Jaiswal confirming two ships have already reached India and discussions on 22 further ships are ongoing.

Update — March 23–26, 2026: Two additional Indian-flagged very large gas carriers have successfully transited the Strait of Hormuz. The Jag Vasant, operated by Great Eastern Shipping and chartered by BPCL, is carrying 47,600 MT of LPG and is expected to dock at Kandla Port on March 26. The Pine Gas, operated by Seven Islands Shipping and chartered by Indian Oil, is carrying 45,000 MT of LPG and is scheduled to arrive at New Mangalore Port on March 27. Combined, the two vessels carry 92,612.59 MT of LPG — the equivalent of roughly a day's cooking gas consumption for India. The Ministry of Ports, Shipping and Waterways confirmed the transit, with Special Secretary Rajesh Kumar Sinha announcing the arrivals. The vessels hugged the Iranian coastline, passing near Qeshm and Larak islands — a route coordinated with Iranian authorities and the IRGC. The Pine Gas broadcast "India ship and crew" identification during transit. A total of 60 Indian seafarers are aboard the two ships combined. An Indian government source confirmed to Reuters that the Indian Navy instructed the vessels to cross the Strait from Iran's coastline. These arrivals follow the earlier transits of MT Shivalik and MT Nanda Devi, bringing the total confirmed LPG cargo delivered or in transit to India since the crisis began to approximately 185,000 MT across four vessels. As of March 24, approximately 22 Indian-flagged ships carrying 611 seafarers remain inside the Persian Gulf awaiting clearance.

Source: Ministry of Ports, Shipping and Waterways official statement, March 23, 2026; Bloomberg, March 23, 2026; BOE Report / Reuters, March 23, 2026; PingTV India, March 24, 2026; Maritime Gateway, March 24, 2026

➤ Related: India-US Trade Deal 2026 and its energy security implications

Three Things That Are Simultaneously True — Updated March 26, 2026

First: PNG and CNG supply to India’s homes and vehicles is 100% protected under the Natural Gas (Supply Regulation) Order, 2026. Refineries are at full capacity. The LPG delivery cycle is unchanged at 2.5 days. 93% of bookings are now online with authenticated delivery. 13,700+ new PNG connections have been issued.

Second: LPG for commercial users (restaurants, hotels, commercial kitchens) has been partially restored to 20% of monthly requirement. The panic booking surge peaked at 88.8 lakh on March 13 and has since declined as government communication took effect. Domestic LPG production has been increased 28% through the LPG Control Order. PNG households are legally barred from LPG refills. Two LNG cargoes from non-Gulf sources are confirmed in transit to India. Russia is supplying 30 million barrels of crude under a US Treasury waiver.

Third: The Ras Laffan Phase 2 strikes have permanently removed 17% of Qatar's LNG export capacity for three to five years. $20 billion in annual revenue is lost. Kuwait, Iraq, and Oman are simultaneously disrupted. Traffic through the Strait of Hormuz is down approximately 95% from pre-war levels. The IEA has called this the largest energy supply disruption in the history of the global oil market. Trump announced a five-day pause on strikes against Iranian power plants on March 23, citing "productive conversations" — Iran denied direct talks and rejected the US 15-point ceasefire proposal. A five-point Iranian counter-proposal has been issued. No agreement has been reached. The five-day pause expires around March 28. India has 60 days of strategic crude reserves, four confirmed LPG tanker transits totalling approximately 185,000 MT, and PM Modi has addressed Parliament confirming supplies are being managed. The situation remains unresolved.

Primary sources used in this article:

• PIB India — pib.gov.in/PressReleasePage.aspx?PRID=2239021 (Minister Puri Parliament Statement, March 12)

• PIB India — pib.gov.in/PressReleasePage.aspx?PRID=2238525 (Inter-Ministerial Briefing)

• PIB India @PIB_India on X — March 20, 2026 (93% online bookings; Sujata Sharma confirmation)

• QatarEnergy official statement on X, March 19, 2026

• Reuters / CNBC — QatarEnergy CEO Saad al-Kaabi interview, March 19, 2026

• Business Standard — $20 billion loss, Trains 4 & 6, March 20, 2026; Russia crude rerouting, March 19, 2026

• Bloomberg, OilPrice.com, Offshore Technology, Fox Business — QatarEnergy damage detail, March 19–20, 2026

• Al Jazeera liveblog — March 20–21, 2026 (Trump ceasefire statement; Kuwait refineries; Panama Canal)

• Times of Israel liveblog — March 20, 2026 (Trump South Lawn statements; Kharg Island)

• CNBC — March 20, 2026 (Trump rules out ceasefire; Randhir Jaiswal on Indian ships)

• PBS NewsHour — March 20, 2026 (Trump ceasefire statement; Iran IRGC missile production)

• NBC News — March 17–20, 2026 (IEA warning; Oman terminal; Iraq suspension; Iran FM Araghchi)

• NPR — March 6, 2026 (US Treasury 30-day waiver for Indian purchase of Russian oil)

• The Print — March 20, 2026 (India’s 40% Qatar LNG exposure; Petronet and GSPC agreements)

• Indian PSU — March 21, 2026 (13,700+ new PNG connections; LPG panic bookings decline)

• India.com (citing Times of India) — March 18, 2026 (IGL 22,000 registrations; 1,300–1,500 daily installations)

• Organiser — March 21, 2026 (PIB March 20 update; Sujata Sharma statement; 93% online)

• Onmanorama — March 14, 2026 (LPG Amendment Order: PNG households cannot book LPG)

• PingTV India — March 16, 2026 (Shivalik tanker 48,000 MT)

• VCNow — 60 days strategic crude reserves; PMUY detail; financial measures

• Bloomberg — Jag Vasant and Pine Gas transit; Trump five-day pause, March 23, 2026

• BOE Report / Reuters — 95% Strait traffic down; Clarksons data; Indian Navy instruction, March 23, 2026

• Ministry of Ports, Shipping and Waterways — Jag Vasant and Pine Gas official confirmation, March 23, 2026

• PingTV India — PM Modi Rajya Sabha statement; 258 MTPA refinery capacity, March 24, 2026

• Organiser — PM Modi Rajya Sabha address, March 24, 2026

• CNBC — Iran rejects US ceasefire plan; Iran five-point counter-proposal, March 25, 2026

• PBS NewsHour — Trump five-day pause announcement, March 23, 2026

• ITV News — Iran UN mission formal passage statement; White House Leavitt statement, March 25, 2026

• Al Jazeera — Trump postpones Iran power plant strikes, March 23, 2026