Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has announced that its supply of Re-gasified Liquefied Natural Gas (RLNG) from GAIL has been restricted due to a Force Majeure event initiated by Petronet LNG. Effective March 06, 2026, RLNG allocation has been cut to 60% of the Daily Contracted Quantity (DCQ). This shortage directly impacts the production of Neem Urea, though other manufacturing units remain unaffected as of the current date.
Critical Disruption to Natural Gas Supply
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has issued an important update regarding a significant disruption to its primary feedstock supply chain. The ongoing conflict in the Middle East region has severely impacted the global supply of Liquefied Natural Gas (LNG).
Upstream Force Majeure Declaration
As a direct consequence, GAIL (India) Limited (GAIL), GNFC’s supplier of Re-gasified Liquefied Natural Gas (RLNG), has received a Force Majeure Notice from its upstream provider, Petronet LNG Limited (PLL). The notice cited unavoidable transit constraints affecting LNG movement.
Impact on GNFC Operations
Since GNFC’s RLNG supply agreement with GAIL is contingent upon GAIL receiving supplies from PLL, GAIL has subsequently issued its own Force Majeure Notice to GNFC. Effective immediately, starting March 06, 2026, the allocation of RLNG quantities to GNFC has been significantly curtailed.
- Restriction Level: Allocation is restricted to 60% of the Daily Contracted Quantity (DCQ) on an overall basis.
- Primary Impact: This supply constraint will cause an impact on the production volume of Neem Urea.
- Other Segments: Manufacturing operations for all other company products are not affected as of the current reporting date.
Monitoring and Future Outlook
The company management is closely monitoring the evolving situation. Given that the Force Majeure event is ongoing, the full extent of the financial and operational impact cannot yet be accurately estimated at this point in time. GNFC affirms its commitment to keeping the Stock Exchanges informed immediately should any material developments occur.
This notification is made on March 6, 2026, by Rajesh Pillai, Company Secretary & Compliance Officer.
Source: BSE
