GAIL said its long-term suppliers, Petronet LNG Ltd, has issued a Force Majeure
notice on 3 March under its Gas Sale and Purchase Agreement.
The notice has been served due to constraints faced by certain LNG vessels arising from maritime navigation restrictions related to the Strait of Hormuz during transit between India and Qatar, and as well as possibly due to reported shutdown of liquefaction facility at Ras Laffan, it said.
Further, QatarEnergy, Petronet’s upstream LNG supplier, has also issued a communication indicating a potential Force Majeure event owing to the recent hostilities in the region, GAIL noted.
Due to supply restrictions imposed by Petronet, the allocation of LNG quantities to GAIL under the said contract has been reduced to zero with effect from 4 March 2026, it added.
LNG supplies to GAIL from other sources/suppliers are currently unaffected, it said.
At this stage, the potential impact of the ongoing Force Majeure situation cannot be quantified. The company is closely monitoring developments, GAIL said.
Strait of Hormuz, located between Oman and Iran and the vital artery for global energy trade has been shut amid the US-Israel-Iran war. The supplies have been hit.
India imports 85 per cent of its crude oil and half of its LNG requirement. Out of it 40- 50 per cent of crude oil and 50-60 per cent of LNG are shipped through the Strait of Hormuz, according to Crisil Ratings.
