NEW DELHI: State-run gas utility GAIL (India) Limited on Thursday said it is assessing the potential impact on downstream customers after Petronet LNG Limited halted liquefied natural gas (LNG) supplies under one of its long-term contracts.
In a regulatory filing, GAIL said Petronet LNG issued a force majeure notice on March 3, 2026, under their Gas Sale and Purchase Agreement.
The development stems from constraints faced by certain LNG vessels navigating the Strait of Hormuz, a key maritime route used for shipments between Qatar and India.
The company added that the disruption may also be linked to a reported shutdown at the liquefaction facility in Ras Laffan Industrial City, one of the world’s largest LNG export hubs.
Further complicating the situation, QatarEnergy, the upstream LNG supplier to Petronet LNG, has indicated the possibility of a force majeure event due to recent hostilities in the region.
“As a consequence of supply restrictions imposed by Petronet LNG, the allocation of LNG quantities to GAIL under the contract has been reduced to zero with effect from March 4, 2026,” the company said in the filing.
However, GAIL clarified that LNG supplies from other sources and suppliers remain unaffected at present.
“The potential impact of the ongoing force majeure situation cannot be quantified at this stage,” the company said, adding that it is closely monitoring developments and will keep stock exchanges informed of any material updates.