Chennai: The natural gas supply in India is most likely to be affected after Petronet LNG, one of the largest buyers of gas from QatarEnergy, issued Force Majeure notices to its off takers like GAIL India, India Oil Corporation and Bharat Petroleum Corporation.
Qatar has halted liquefied natural gas (LNG) production after its facilities came under attack from Iran. Petronet LNG has issued a Force Majeure Notice to QatarEnergy in respect of its LNG tankers, namely Disha, Raahi, and Aseem.
Consequently, Petronet has issued corresponding Force Majeure notices to its off-takers, namely GAIL (India) Limited, Indian Oil Corporation Limited (IOCL), and Bharat Petroleum Corporation Limited (BPCL), under the relevant Gas Sale and Purchase Agreements on 3rd March 2026, the company informed the stock exchanges.
“In light of the recent and ongoing war in the Middle East region involving Iran and Israel, vessels are presently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, the loading port of QatarEnergy,” Petronet LNG said.
India has long-term LNG contracts with Qatar. The temporary suspension of cargoes will lead to supply cuts up to 40 per cent for a range of industrial consumers and city gas distribution (CGD) companies.
However, Petronet has not estimated the impact of the supply disruption. “Acts of War is also excluded under Business Interruption Insurance covers taken by Petronet LNG. The likely impact of Force Majeure which is currently an ongoing event cannot be estimated at this point of time. The company is closely monitoring the developments and will keep the stock exchanges informed of any material updates in this regard,” it added.
“India faces elevated exposure to this disruption, with an estimated 50–55 per cent of its crude oil and LNG imports transiting the Strait of Hormuz. Strategic petroleum reserves cover only 8–9 days of oil demand, and there are no comparable strategic reserves for natural gas. If the disruption persists beyond the very short term, supply-side stress will intensify rapidly. We expect gas supplies to be rationed in the near term,” said Sumit Pokharna, VP, Fundamental Research, Kotak Securities.
Gas transmission companies and LNG importers are likely to face curtailed volumes and higher landed LNG costs, pressuring both throughput and margins, he said.
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