Petronet issues force majeure, LNG supply hit

India's top gas importer Petronet LNG has issued a force majeure notice to its supplier QatarEnergy and local buyers as its vessels are unable to reach Ras Laffan load port due to the crisis in West Asia, it said in an exchange filing on Wednesday.

The US-Iran conflict has disrupted fuel shipments in the region. Transit through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near-halt after some vessels in the area were hit.

Due to the prevailing security situation and the material risks posed to maritime navigation, Petronet has issued a Force Majeure Notice to QatarEnergy for its LNG tankers Disha, Raahi, and Aseem, it said in the notice issued late Tuesday.

Petronet has also issued force majeure to its customers GAIL (India), Indian Oil, and Bharat Petroleum.

QatarEnergy has also issued a notice to Petronet "indicating a potential event of Force Majeure due to the hostilities prevailing in the region", Petronet said.

On Wednesday, Petronet stocks dropped 9.3% to end at Rs 281 on the BSE. During the day, it tanked 11.7% to Rs 273.

Indian gas suppliers GAIL and Indian Oil Corp have already reduced gas supplies to industries including fertiliser plants. Sources familiar with the matter said lower gas supplies had already marginally hit production of some fertiliser companies including the Indian Farmers Fertiliser Cooperative and Kribhco Fertilizers.

So far the companies have not announced any cuts in gas supplies for households or automobile sector.

India imported 27 million tonnes of LNG in 2024/25, about half of its overall gas consumption, according to the govt data. The bulk of the LNG is imported from Qatar.