GAIL (India) Limited announced that its allocation of liquefied natural gas (LNG) from Petronet LNG Limited has been cut to zero following a force majeure notice due to disruptions in the Strait of Hormuz and a possible shutdown in Ras Laffan. The notice, issued by Petronet LNG on March 3, cited challenges faced by LNG vessels during transit between India and Qatar.
The constraints are linked to maritime navigation restrictions in the Strait of Hormuz and reports of a shutdown at the liquefaction facility in Ras Laffan. GAIL’s long-term supplier, Petronet LNG Limited, served the force majeure notice under the Gas Sale and Purchase Agreement, highlighting the issues faced by LNG vessels during transit.
In response to the force majeure notice, GAIL’s LNG allocation under the contract has been reduced to zero effective March 4. The company is evaluating the situation to assess if any supply adjustments are necessary for its downstream customers. However, GAIL clarified that its LNG supplies from other sources and suppliers are currently unaffected.
The upstream LNG supplier to Petronet LNG, QatarEnergy, also indicated a potential force majeure event due to recent hostilities in the region. GAIL mentioned that the impact of the ongoing force majeure situation cannot be quantified at this point. The company assured that it is closely monitoring developments and will provide updates to stock exchanges regarding any significant changes.
