GAIL (India) Limited has been notified by its long-term supplier, Petronet LNG Limited (PLL), regarding a Force Majeure (FM) event declared on March 3, 2026. The FM stems from maritime navigation restrictions around the Strait of Hormuz and a reported shutdown at the Ras Laffan liquefaction facility. Consequently, GAIL’s LNG allocation from this contract was reduced to zero effective March 4, 2026. The company is assessing downstream impact while other supply sources remain unaffected.
Notification of Force Majeure Event
GAIL (India) Limited confirms receipt of a Force Majeure (FM) notice from its long-term supplier, Petronet LNG Limited (PLL), dated March 3, 2026, concerning the Gas Sale and Purchase Agreement between the two entities. This notification activates due to constraints faced by certain LNG vessels during transit between India and Qatar, specifically citing navigation restrictions related to the Strait of Hormuz.
Supply Reduction Details
Further compounding the situation, PLL’s upstream supplier, QatarEnergy, has also signaled a potential Force Majeure event due to recent regional hostilities. As a direct consequence of the supply restrictions imposed by PLL, the allocation of LNG quantities to GAIL under the agreement has been immediately reduced to zero, effective from March 4, 2026.
Company Response and Outlook
GAIL is actively assessing the ramifications of these supply curtailments and determining the necessary adjustments that must be imposed on its downstream customers. It is important to note that LNG supplies to GAIL from other sources and suppliers remain unaffected at this stage. The company is closely monitoring the developments of this ongoing Force Majeure situation, though the full potential financial impact cannot yet be quantified.
Source: BSE
