India, Europe feel fuel crunch as Gulf gas supplies disrupted amid war
GS2Polity · Governance · IR· India's bilateral relations· Prelims + Mains·
Why in news
Qatar halted LNG production due to drone attacks, causing a fuel crunch for India and Europe and forcing Indian firms like GAIL and IOC to cut supplies.
Background
Qatar suspended LNG production following drone strikes on its facilities. Indian companies GAIL, Indian Oil Corp (IOC), and Petronet LNG Ltd have implemented temporary supply cuts and are planning spot tenders to manage the shortage.
Facts for Prelims
- FactGAIL, Indian Oil Corp (IOC), and Petronet LNG Ltd are the Indian entities responding to the gas supply disruption.
- FactThe fuel crunch is attributed to both drone attacks on Qatari facilities and the US-Israeli war with Iran.
For Mains
Q. Analyze the vulnerabilities of India's energy security in the face of geopolitical instability in the Middle East and suggest measures to diversify energy imports.
Dimensions to cover in your answer
- Supply chain vulnerability: High dependence on Middle Eastern LNG creates susceptibility to regional geopolitical shocks.
- Market volatility: Price surges from supply disruptions impact industrial production and fiscal expenditure on energy imports.
Keywords: Energy Security · Geopolitical Risk · Supply Chain Resilience · LNG Imports · Market Volatility
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