Amid ongoing geopolitical tensions in the West Asia region, which have led to disruptions in vessel transit through the critical Strait of Hormuz, Petronet LNG, India's largest importer of liquefied natural gas (LNG), has issued force majeure notices. These notifications were directed to its primary supplier, QatarEnergy, and its domestic off-takers including GAIL (India), Indian Oil Corporation, and Bharat Petroleum Corporation. The declaration indicates Petronet LNG's current inability to lift contracted LNG cargoes from Qatar and, subsequently, to supply the agreed quantities to its off-takers. Concurrently, QatarEnergy faces challenges in fulfilling its supply obligations. Following these developments, shares of Petronet LNG experienced a decline of nearly 12%, with other Indian oil and gas companies exposed to LNG also seeing decreased valuations. Petronet LNG further clarified that its business interruption insurance policies exclude acts of war. Consequently, Indian oil and gas companies are actively seeking additional LNG cargoes from alternative global markets.
Source: https://indianexpress.com/article/business/west-asia-conflict-india-lng-supplies-petronet-qatarenergy-notices-stock-plummets-10564443/
