GAIL (India) Ltd. said on Thursday supply of liquefied natural gas from Petronet LNG Ltd. and QatarEnergy have gone down to zero amid the disruption caused due to the Iran war. The company warned it can lead to supply curtailment to downstream customers.
Petronet LNG, GAIL's long-term supplier, issued a Force Majeure notice on March 3 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, and as well as shutdown of the liquefaction facility at Ras Laffan, according to a stock exchange filing.
"Further, QatarEnergy, PLL's upstream LNG supplier, has also issued a communication indicating a potential Force Majeure event owing to the recent hostilities in the region. Consequently, due to supply restrictions imposed by PLL, the allocation of LNG quantities to GAIL under the said contract has been reduced to zero with effect from 4th March 2026," the filing said.
GAIL said it is assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers. "Notwithstanding the above, LNG supplies to GAIL from other sources/suppliers are currently unaffected. At this stage, the potential impact of the ongoing Force Majeure situation cannot be quantified. The Company is closely monitoring developments and will continue to keep the stock exchanges informed of any material updates," the filing said.
GAIL operates about 11,400 km of natural gas pipeline network in India with around 75% of market share in natural gas transmission, connecting multiple gas sources to various customers including large industrial units.
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LNG Prices Up, Spurs Supply Grab
Asian LNG prices pulled back slightly from the highest level in three years on Thursday, as the market weighed the viability of a US plan to ensure safe passage for tankers through the Strait of Hormuz. Spot LNG eased to around $23.80 per million British thermal units in Asia, said traders, but levels were still more than double compared with last week, Bloomberg News reported.
Energy prices shot up earlier this week after the United States and Israel launched a joint air offensive against Iran. The Islamic Republic retaliated with missile and drone strikes across the Gulf after the killing of Supreme Leader Ayatollah Ali Khamenei.
Markets have been worried over oil and gas supply from the Middle East as Iran has targeted ports and refineries in key regional producers and threatened to disrupt shipping in the narrow Strait of Hormuz that connects the Persian Gulf with the Arabian Sea.
Operations were halted at Qatar's Ras Laffan plant, the world's biggest LNG export facility. Reports said some LNG tankers have redirected toward Asia after initially heading for Europe, as competition for supplies intensifies.
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