Petronet LNG Ltd has invoked force majeure on its Liquefied Natural Gas (LNG) supply arrangements with QatarEnergy after escalating hostilities in West Asia disrupted maritime movement through the Strait of Hormuz, the company said in a stock exchange filing.
The development triggered a sharp reaction in the market, with Petronet LNG shares falling over 9 percent on Wednesday to ₹280.70 on the National Stock Exchange (NSE).
In its disclosure to the BSE and NSE, the company said LNG vessels Disha, Raahi, and Aseem are unable to reach Ras Laffan in Qatar — the loading port of QatarEnergy — due to security concerns in the region linked to the ongoing Iran–Israel conflict.
Following the disruption, QatarEnergy also issued a potential force majeure notice to Petronet LNG. The company, in turn, passed on corresponding force majeure notices to its downstream buyers — GAIL (India) Ltd, Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL) — under their gas sale and purchase agreements dated March 3, 2026.
Petronet LNG said acts of war are excluded under its business interruption insurance cover, meaning the company will not be able to claim insurance relief for any losses arising from the disruption.
The company added that the financial impact of the event cannot be assessed at this stage as the situation remains fluid.
The stock opened at ₹298, touched an intraday low of ₹271.75, and was trading at ₹280.70 compared with the previous close of ₹308.65, reflecting investor concerns over supply disruptions affecting India’s largest LNG import terminal operator.
Petronet LNG said it is closely monitoring the evolving situation and will inform stock exchanges of any material developments.
