War, Gas Crisis & Inflation: Can the LNG industry recover from conflict-triggered disruption soon? GAIL’s outlook flags distant dream

India LNG The ongoing West Asia crisis and the closure of the Strait of Hormuz has led to the supply disruption of the liquefied natural gas (LNG), raising concerns around global energy security. Meanwhile, state-owned gas utility GAIL (India) Ltd has warned that the recovery of India’s LNG industry will take time, underlining a diversified LNG sourcing portfolio as the need of the hour to boost its energy security.

-Middle East conflict and Hormuz closure have significantly disrupted the LNG industry; recovery will take time.

- Even after the war subsides, LNG production normalization is expected to be gradual, with Qatar indicating amulti-year recovery timeline.

- India should strengthen a diversified LNG sourcing portfolio to improve energy security.

- New global liquefaction projects are expected to increase LNG availability and soften prices in the coming years.

- India’s LNG/RLNG demand is expected to grow strongly, led by the CGD sector and supported by refineries, petrochemicals, steel, power and other industries.

- Government push for LPG-to-PNG conversion will further accelerate gas demand growth.

- CBG sector, currently at more than 0.6 MMSCMD, is expected to grow significantly with the help of supportive policies like mandatory CBG blending obligation etc.

GAIL India Q4 Results 2026

On Thursday, GAIL (India) Ltd announced its earnings for the fourth quarter ended March 31, 2026. The PSU also declared a final dividend for its shareholders.

The Board of GAIL recommended a final dividend payment of Re 0.50 per share for FY 2025-26. This is in addition to an interim dividend of Rs 5.00 per share, taking the total payout ratio to 51.9 per cent. The dividend, however, is subject to approval of shareholders in the ensuing Annual General Meeting.

The state-owned gas utility reported a 40.9 per cent fall in its consolidated net profit in the January-March quarter profit, hit hard by energy supply disruptions related to the war in West Asia. The net profit stood at Rs 1,481 crore in the reporting quarter compared with Rs 2,506 crore earning a year ago.

The Iran war disrupted India's liquefied natural gas (LNG) imports from its largest supplier Qatar, since early March.

The company's revenue from operations declined 2.4 per cent to Rs 35,577 crore in the quarter under review from Rs 35,577 crore in the year-ago period.

What Deepak Gupta, Chairman & Managing Director, GAIL (India) Limited Said

"The year was marked by a challenging & complex global backdrop, beginning with the ongoing Russia-Ukraine conflict and evolving geopolitical developments including the onset of the West Asian crisis towards the later part of the year. Despite these headwinds, supported by timely policy interventions by the Government, GAIL delivered a resilient operational and financial performance. Our teams remained focused on ensuring operational continuity, cost discipline, and supply reliability, enabling the Company to effectively navigate a volatile market environment."

During FY26, the company incurred a capex of Rs 9,594 crore, primarily towards pipeline infrastructure, petrochemical projects, operational capex and equity contributions to joint ventures and subsidiaries, in line with its long-term growth strategy, GAIL said in the press statement.

Operational Highlights (FY26 vs FY25):

- Natural Gas Transmission: 122.18 MMSCMD vs. 127.32 MMSCMD

- Gas Marketing Volume: 104.21 MMSCMD vs. 101.49 MMSCMD

- LHC Production: 813 TMT vs. 947 TMT

- Polymer Production: 768 TMT vs. 827 TMT

- LPG Transmission:4,600 TMT vs. 4,478 TMT

Quarterly Performance (Q4 FY26 vs Q3 FY26):

Gas Transmission: 118.99 MMSCMD vs. 125.45 MMSCMD

Gas Marketing: 101.88 MMSCMD vs. 103.98 MMSCMD