GAIL Reports Zero LNG Allocation from Petronet Following Strait of Hormuz Force Majeure

GAIL (India) Limited has informed the stock exchanges that its long-term supplier, Petronet LNG Limited (PLL), issued a Force Majeure (FM) notice under their Gas Sale and Purchase Agreement, resulting in a complete halt of LNG volumes.

The state-owned gas utility stated that the notice was 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. The disclosure added that the disruption was “as well as possibly due to reported shutdown of liquefaction facility at Ras Laffan.”

Furthermore, QatarEnergy, the upstream LNG supplier to Petronet, has issued a communication indicating a “potential Force Majeure event owing to the recent hostilities in the region,” GAIL noted in the statement.

Consequently, due to the supply restrictions imposed by PLL, the allocation of liquefied natural gas quantities to GAIL under the contract has been reduced to zero with effect from March 04, 2026, the filing stated.

Management stated the company is currently assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers.

However, the disclosure explicitly clarified: “Notwithstanding the above, LNG supplies to GAIL from other sources/suppliers are currently unaffected.”

Regarding the financial implications, GAIL indicated that “at this stage, the potential impact of the ongoing Force Majeure situation cannot be quantified.”