What is the common examiner trap about Economy in UPSC exams?

They might ask about the share of India's LNG imports from Qatar (41.4%) versus the share of India's total natural gas requirement met by LNG (~50%), or confuse the Strait of Hormuz's importance for global oil flows versus LNG flows (it's critical for both). They may also swap the priority percentages for different categories in the gas rationing list.

What should UPSC aspirants remember about Economy for Prelims?

1. Target this Data: 55-60% of India's LNG imports depend on Strait of Hormuz. 2. Target this Data: India's long-term LNG contracts with Qatar total 8.5 mtpa. 3. Target this Data: Qatar's Ras Laffan facility accounts for 20% of global LNG supply. 4. Target this Nodal Body: QatarEnergy (the state-owned LNG company of Qatar). 5. Target this Legal Point: Government order on prioritisation of natural gas supplies (four-tier list).

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News 28 of 33

Strait of Hormuz Closure Impacts 30% of India's Gas Supply, Triggers LNG Cargo Diversion & Gas Rationing Priority List

Q: Which body is responsible for the operation of the Ras Laffan LNG facility, a major source of India's LNG imports?

QatarEnergy, The article explicitly mentions QatarEnergy as the state-owned company operating the Ras Laffan LNG facility. Saudi Aramco is Saudi Arabia's oil company, ADNOC is UAE's, and Gazprom is Russia's.

Q: Consider the following statements regarding the impact of the West Asia war on India's energy security: 1. The closure of the Strait of Hormuz has made approximately 30% of India's total natural gas supply unavailable. 2. India imports over 55% of its LNG via the Strait of Hormuz, primarily from Qatar and the UAE. 3. Under the government's gas prioritisation order, fertilizer units are allocated 80% of their average past consumption. Which of the statements given above is/are correct?

Both 1 and 2, Statement 1 is correct as the article states the war made 30% of India's natural gas supply unavailable. Statement 2 is correct as it mentions 55-60% of India's LNG imports depend on the strait. Statement 3 is incorrect; the article states fertilizer units receive 70%, not 80%, of their average consumption.

Q: According to Commerce Ministry data cited in the article, what percentage of India's LNG imports in 2024-25 came from Qatar?

41.4%, The article states India imported 27 million tonnes of LNG in 2024-25, of which 11.2 million tonnes (or 41.4%) came from Qatar. The other options are close distractors.

Q: What is the primary reason for the diversion of Europe-bound LNG cargoes to Asia, as per the article?

A surge in Asian LNG spot prices due to supply disruption from the Strait of Hormuz., The article clearly states that the halt in vessel movements through the Strait of Hormuz created a supply gap, forcing Asian buyers to scout for LNG on the spot market, which led to a surge in Asian LNG prices, making it lucrative for cargoes to divert to Asia.

Economy Intl. Relations InfrastructureHIGH

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains High

25 Mar 2026

~2 min

Source: Indian Express

Key Data:55-60% of India's LNG via Hormuz30% of India's gas supply impacted41.4% LNG from Qatar8.5 mtpa India-Qatar contracts20% global LNG from Ras Laffan12.8 mtpa damage at Ras Laffan

Bodies:QatarEnergy

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~2 min · Quick mode

What This Article Covers

1.War-induced Strait of Hormuz closure halts 20% of global LNG flows, creating a supply gap for Asian importers like India.

2.India's LNG import dependency on Qatar is over 41%, with Qatar's Ras Laffan facility (20% of global supply) damaged, costing $20bn/yr.

3.India responds with a government-mandated priority list for gas supply, protecting households (100%), fertilizers (70%), and curbing power/refineries.

The Big Picture

Prelims · HighMains · High

The closure of the Strait of Hormuz and attacks on Qatar's Ras Laffan LNG facility have disrupted global LNG supplies, forcing 11 Europe-bound cargoes to divert to Asia. India, which sources 55-60% of its LNG imports via Hormuz, faces a 30% gas supply shortfall, prompting emergency gas rationing with a four-tier priority list.

Exam Lens

Quick Exam Facts From News

LNG Cargoes Diverted11 tankers (since March 3)

India's LNG via Hormuz55-60% of imports

India's Gas Supply Impact30% of total natural gas

Qatar's Share of India's LNG41.4% (11.2 mn tonnes of 27 mn tonnes)

India-Qatar Long-term Contracts8.5 million tonnes per annum (mtpa)

Qatar's Ras Laffan Share20% of global LNG supply

Ras Laffan Damage12.8 mtpa capacity, 5-year repair

Qatar's Annual Export (2025)81 million tonnes LNG

1-Minute Revision

›LNG Cargoes Diverted: 11 tankers (since March 3)
›India's LNG via Hormuz: 55-60% of imports
›Target this Data: 55-60% of India's LNG imports depend on Strait of Hormuz.
›Target this Data: India's long-term LNG contracts with Qatar total 8.5 mtpa.
›Target this Data: Qatar's Ras Laffan facility accounts for 20% of global LNG supply.
›Target this Nodal Body: QatarEnergy (the state-owned LNG company of Qatar).

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News Snapshot

🛳️

Supply Shock

The Strait of Hormuz closure halts 20% of global LNG flows, forcing cargo diversions and creating a supply crisis for Asian importers.

🇮🇳

India's Vulnerability

India faces a 30% natural gas supply shortage as 55-60% of its LNG imports depend on the Strait of Hormuz.

📋

Rationing Response

The Indian government issues a four-tier priority list for gas supply, protecting households (100%) and fertilizers (70%) while cutting power.

Detailed Analysis & Strategic Depth

Context / Background

The Strait of Hormuz is a critical maritime chokepoint between Iran and Oman, handling one-fifth of global LNG flows. India's energy security is heavily intertwined with this route, sourcing over half its LNG imports (primarily from Qatar and UAE) through it. The West Asia war has effectively closed this artery, exposing India's strategic vulnerability to geopolitical disruptions in energy supply chains.

Core Analysis & Implications

The dual shock of Hormuz closure and attacks on Qatar's Ras Laffan facility (damaging 12.8 mtpa capacity) has triggered a global LNG scramble. India's long-term contracts (8.5 mtpa with Qatar) are jeopardized, forcing expensive spot market purchases. The government's priority list reveals a triage approach: essential sectors like household PNG (100%), CNG (100%), and fertilizer (70%) are shielded, while gas-based power plants and refineries face cuts. This highlights the inelastic demand and criticality of gas for food security (fertilizers) and public welfare.

Future Outlook / Way Forward

This crisis underscores the urgent need for India to diversify its LNG sourcing and accelerate domestic gas production. Strategic investments in long-term contracts with alternative suppliers (US, Australia, Russia) and building strategic reserves are imperative. Enhancing pipeline infrastructure and promoting renewable alternatives can also reduce import dependency. The event is a stark reminder for India's energy policy to internalize geopolitical risks.

Key Facts at a Glance

LNG Cargoes Diverted11 tankers (since March 3)

India's LNG via Hormuz55-60% of imports

India's Gas Supply Impact30% of total natural gas

Qatar's Share of India's LNG41.4% (11.2 mn tonnes of 27 mn tonnes)

India-Qatar Long-term Contracts8.5 million tonnes per annum (mtpa)

Qatar's Ras Laffan Share20% of global LNG supply

Ras Laffan Damage12.8 mtpa capacity, 5-year repair

Qatar's Annual Export (2025)81 million tonnes LNG

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC

Which body is responsible for the operation of the Ras Laffan LNG facility, a major source of India's LNG imports?

Q2Statement-basedHardUPSC

Consider the following statements regarding the impact of the West Asia war on India's energy security:

1. The closure of the Strait of Hormuz has made approximately 30% of India's total natural gas supply unavailable.

2. India imports over 55% of its LNG via the Strait of Hormuz, primarily from Qatar and the UAE.

3. Under the government's gas prioritisation order, fertilizer units are allocated 80% of their average past consumption.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, SSC, Banking

According to Commerce Ministry data cited in the article, what percentage of India's LNG imports in 2024-25 came from Qatar?

Q4Application/ImpactMediumUPSC, SSC

What is the primary reason for the diversion of Europe-bound LNG cargoes to Asia, as per the article?

All 25 MCQs ▸

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Strait of Hormuz Closure Impacts 30% of India's Gas Supply, Triggers LNG Cargo Diversion & Gas Rationing Priority List

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

Supply Shock

India's Vulnerability

Rationing Response

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance