New Delhi, March 05: GAIL (India) Limited on Thursday said LNG allocation under its long-term contract with Petronet LNG Limited (PLL) has been reduced to zero following a force majeure notice linked to maritime navigation restrictions in the Strait of Hormuz and a possible shutdown at the Ras Laffan liquefaction facility in Qatar.
In a regulatory filing, GAIL said PLL invoked force majeure on March 3 under the Gas Sale and Purchase Agreement, citing constraints faced by LNG vessels transiting between India and Qatar. The development follows communication from QatarEnergy regarding a potential force majeure event amid regional hostilities.
Effective March 4, LNG supplies under the contract have been curtailed to zero. GAIL said it is assessing the potential impact on downstream customers, while clarifying that supplies from other sources remain unaffected at present.
The company added that the financial and operational impact cannot be quantified at this stage and that it is closely monitoring developments.
