Qatar stopped the supply of LPG, expressed fear of attack in the Red Sea, India’s tension increased
The ongoing tension in the Red Sea is having a direct impact on India. Qatar has halted the supply of liquefied natural gas (LNG) shipments due to the US-led offensive against Houthi militants in the Red Sea. Qatar’s state energy company said it was stopping the export of LNG through the Red Sea with immediate effect. Due to this, fear of shortage of natural gas is being raised all over the world. India imports maximum natural gas from Qatar. According to a 2023 report by Statica, India sources 42 percent of its total natural gas imports from Qatar.
Qatar Energy stopped four tankers
Qatar Energy, the world’s second-largest LNG exporter, like several other companies, has now detained at least four LNG tankers in the Red Sea, a senior source said. However, Qatar Energy did point out that LNG production is continuing. Qatar Energy has advised all its tankers not to travel through the Red Sea. The company has said that if tankers are going to pass through the Red Sea, they should stop where they are and wait for safety advice.
Preparation to circumnavigate Africa instead of the Red Sea
LSEG shiptracking data showed that Qatar’s Al Ghariya, Al Huwaila and Al Numan ships had loaded LNG at Ras Laffan and were heading towards the Suez Canal before stopping in Oman on January 14. The Al Rekayat, which was heading back to Qatar, also stopped on its way to the Red Sea on January 13. “This is an immediate stop order to take safety advice; if it remains unsafe to go through the Red Sea, we will go through Africa’s Cape of Good Hope,” the QatarEnergy source said.
How important is the Red Sea?
The Red Sea is connected to the Mediterranean Sea via the Suez Canal, which forms the shortest shipping route between Europe and Asia. It is connected to the Gulf of Aden via the Bab al-Mandab Strait between Yemen and Djibouti. About 12% of the world shipping traffic passes through this canal. Oil prices edged lower on Monday as supplies remained unaffected despite rising tensions in the Middle East.
Direct impact of Red Sea crisis on India
The ongoing crisis in the Red Sea seems to be having a direct impact on India. India’s Export Promotion Council has told the Commerce Ministry that Indian exporters are holding back their consignments due to rising freight costs due to the Red Sea crisis. Commerce Secretary Sunil Barthwal said that to provide relief to exporters, the government has asked ECGC not to increase the interest rate on export loans. ECGC is a public sector export promotion organisation. It improves the competitiveness of Indian exports by providing them credit insurance cover.
What is happening in the Red Sea?
The US and allies launched strikes against Houthi rebels on Friday after weeks of attacks by Houthi rebels on ships in the Red Sea. After this, Houthi rebels attacked an American warship with an anti-ship cruise missile. However, the already alert US Navy shot down the Houthi missile in the air. America has confirmed the attack by Houthi rebels. During the Israel-Hamas war, Houthi rebels have targeted oil and cargo ships from Asia and the Middle East along the Suez Canal, a vital corridor linking Europe. Such attacks threaten to turn the Israel-Hamas war into a regional conflict.
