Israeli strike on Iran's largest gas field escalates war across the Gulf. Why South Pars is important

South Pars is part of the world’s largest gas field and is a crucial energy source for Iran. In retaliation, Tehran hit Qatar’s energy facilities in Ras Laffan.

Israel’s attack on the South Pars, a key Iranian gas field, has now sharply increased tensions in a conflict that is already sending shockwaves across the global economy. Iran responded by targeting energy infrastructure in other parts of West Asia, pushing up oil and gas prices and leading to differences between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu over Tel Aviv’s action against Tehran.

The attack on South Pars also led to differences between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. (Reuters/File Photo)

South Pars forms part of the world’s largest gas field and is a crucial energy source for Iran. In this case, the target is not Iran’s exports but its main domestic energy source, a country that at times struggles to generate enough electricity. Follow Iran-US war live updates here.

In retaliation, Tehran struck Qatar’s energy facilities in Ras Laffan industrial city. Notably, this has also raised concerns for India, which depends on imports for more than 88% of its crude oil and around 50% of its gas.

What is South Pars? Where is it located?

The South Pars gas field, the world's largest of its kind, is shared between Qatar and Iran. It is known as South Pars on the Iranian side and the North Field on the Qatari side.

South Pars forms part of the world’s largest gas field.

The field covers 9,700 sq km (3,745 sq miles) and lies close to the Iranian coastal city of Asaluyeh.

Why South Pars is energy lifeline for Iran

Iran depends heavily on natural gas for electricity generation and heating. It is the fourth-largest consumer of natural gas in the world, after the United States, China and Russia, according to the Centre on Global Energy Policy at Columbia University, despite having a smaller economy.

Unlike many other West Asian countries, Iran widely uses gas for heating due to its colder climate. Much of this usage is subsidised, which reduces incentives to conserve energy. This is where South Pars comes in.

South Pars is the country’s main source of domestic gas, meeting around 80 per cent of Iran’s natural gas demand. Tehran’s total gas output stood at 276 billion cubic metres in 2024, with about 94% used domestically, according to data from the Gas Exporting Countries Forum.

South Pars is the country’s main source of domestic gas.

The field also supplies some gas to Iraq. Overall, Iran meets roughly one-third of Iraq’s gas and electricity needs, according to Iraq’s Ministry of Electricity.

On Wednesday, the Iraqi News Agency (INA) reported that electricity ministry spokesperson Ahmad Moussa said Iranian gas supplies to Iraq had been stopped due to recent developments in the region, sharply reducing power generation.

Iran attacks Qatar’s Ras Laffan in response: What is it? Why is it significant?

In response to the Israeli strike, Iranian missiles hit a liquefied natural gas (LNG) facility at Ras Laffan Industrial City in northern Qatar.

Ras Laffan had shut down on March 2 after an earlier Iranian strike and was hit again on Thursday. The level of damage remains unclear, but the closure and repeated attacks have pushed up natural gas prices in Asia and Europe.

Located about 80 km (50 miles) northeast of Doha, Ras Laffan is the world’s largest LNG production site. It produces nearly 20 per cent of global LNG supply and plays a key role in meeting demand across Asian and European markets.

Ras Laffan is the world’s largest LNG production site.

After the attacks, Qatar has cut its exports by around 17 per cent, leading to an estimated $20 billion in annual losses. Repairs could take up to five years, even though output had already stopped after earlier strikes, according to the Associated Press.

What attack on Ras Laffan means for India

The conflict had already affected India’s gas supplies from Qatar, its biggest source. Qatar accounts for about one-third of India’s liquefied petroleum gas imports and nearly half of its liquefied natural gas imports.

Even if the conflict ends or eases, the impact on India will depend on how much damage the Iranian strike has caused at Ras Laffan. Supplies of LNG and piped natural gas will depend on how long repairs take.

Qatar also supplied around 5 million metric tonnes of LPG to Indian companies, including oil marketing companies. Official data shows Qatar remains India’s largest LNG supplier.

Qatar accounts for about one-third of India’s liquefied petroleum gas imports.

In 2024-25, it supplied LNG worth $6.39 billion. It is also the top LPG supplier to India, with supplies worth $3.21 billion in 2024-25, as mentioned in an earlier HT report.

Trump, Netanyahu divided over South Pars strike: Why Israel’s attack is in focus

Israel’s strike on the South Pars gas field has put the spotlight on differences between Donald Trump and Benjamin Netanyahu, raising concerns about how closely they are aligned in a war that began as a coordinated move against a long-standing regional rival.

Speaking during an Oval Office meeting with Japanese Prime Minister Sanae Takaichi, Trump told reporters he did not agree with or approve of Israel’s strike on the world’s largest gas field.

“I told him, ’Don’t do that,'” Trump said about Netanyahu’s decision. “We get along great. It’s coordinated, but on occasion, he’ll do something. And if I don’t like it, and so we're not doing that anymore.”

Netanyahu later said Israel “acted alone” and added that he has agreed to Trump’s request to avoid any further strikes on Iran’s major gas field. He also tried to play down any gap between him and Trump.

Sources familiar with the matter told the Associated Press and The New York Times that the United States had been informed of the strike beforehand. One source said Israel’s targets are being coordinated with the US.

With inputs from agencies