Petronet LNG issues Force Majeure notices, amid Middle East situation

Petronet LNG Ltd, India’s largest LNG importer, said 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 (also referred to as the Gulf of Hormuz) to reach Ras Laffan, the loading port of QatarEnergy.

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Considering the prevailing security situation and the material risks posed to maritime navigation, Petronet LNG said it has issued a Force Majeure Notice to QatarEnergy in respect of its LNG tankers, namely Disha, Raahi, and Aseem.

Further, QatarEnergy, being the Company’s seller, issued a notice indicating a potential event of Force Majeure due to the hostilities prevailing in the region, Petronet said.

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.

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 said.

Petronet LNG Limited accounts for around 34% of gas supplies in the country and handle around 74% of LNG imports in India.

On 2 March, Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy said it has ceased production of liquefied natural gas (LNG) and associated products.

Further, it also is stopping the production of some downstream products in the State of Qatar, including urea, polymers, methanol, aluminum and other products.

Also read:  https://industrialeconomist.com/strait-of-hormuz-all-you-need-to-know/

https://industrialeconomist.com/middle-east-conflict-what-precautions-businesses-can-take/

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