Gas Crisis Looms Over India's Ceramic Hub as Iran War Escalates

For Morbi, the world’s second-largest ceramic hub, the stakes are existential, even as Qatar shutters the world's largest LNG terminal amid Iran war.| Business News

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The ceramic industry in Gujarat's Morbi district is facing a looming production crisis due to an escalating Iran war that has choked the supply of essential natural gas.

Most of the gas and petroleum products come from GCC countries, but vessels passing through the Strait of Hormuz are being stopped at an area controlled by Iran, forcing a complete barricade.

Shipping through the Strait of Hormuz, which carries nearly half of India's crude oil and gas supply every day, has come to a halt as the Iran war intensified and spread across the wider Middle East.

Tehran's drone attacks have forced Qatar to shut down the world's largest LNG terminal in Ras Laffan, while Saudi Aramco has closed its Ras Tanura refinery and Iraq has cut oil production.

The manufacturers in Morbi, the world's second-largest ceramic hub, are almost entirely dependent on gas-fired kilns and are anticipating a total shutdown if logistics do not improve.

Despite the industry's alarm, New Delhi maintains that India's energy security remains intact, with eight weeks of crude oil and petroleum inventory, including strategic reserves.

Officials downplayed the impact of the Iranian blockade, asserting that only 40% of India's crude imports transit through the Strait of Hormuz, leaving the country in a comfortable position to manage potential supply-side shocks.