Gas supply to GAIL stops after Petronet LNG issues force majeure notice

New Delhi, March 5 (IANS) GAIL (India) Limited on Thursday said the allocation of liquefied natural gas (LNG) from Petronet LNG Limited under a long-term contract has been reduced to zero after the supplier issued a force majeure notice due to disruptions linked to maritime navigation restrictions in the Strait of Hormuz and possible shutdown of facilities in Ras Laffan.

In a regulatory filing, the company said Petronet LNG issued the force majeure notice on March 3 under the Gas Sale and Purchase Agreement, citing constraints faced by certain LNG vessels during transit between India and Qatar.

The situation has arisen amid maritime navigation restrictions in the Strait of Hormuz and reports of a shutdown at the liquefaction facility in Ras Laffan.

“This is to inform that one of GAIL’s long-term suppliers, Petronet LNG Limited (PLL), has issued a Force Majeure (FM) notice on March 3 under its Gas Sale and Purchase Agreement,” it said in its exchange filing.

“The notice has been served 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 possibly due to reported shutdown of liquefaction facility at Ras Laffan,” it added.

The development comes after QatarEnergy, the upstream LNG supplier to Petronet LNG, also communicated a potential force majeure event due to recent hostilities in the region.