New Delhi, March 4 Shares of gas importer Petronet LNG Ltd plunged by over 9 per cent on Wednesday as Qatar halted liquefied natural gas (LNG) production after its facilities came under attack amid the ongoing West Asia conflict, disrupting supplies to India and squeezing feedstock availability for key domestic sectors.
The stock fell by 9.27 per cent to close at Rs 280.50 on the BSE. During the day, it dropped by 11.69 per cent to Rs 273.
At the NSE, shares of the firm fell by 9.28 per cent to Rs 280. Intra-day, the stock tumbled by 11.95 per cent to Rs 271.75.
India, which relies on long-term LNG contracts with Qatar for a significant portion of its gas needs, has seen a temporary suspension of cargoes, leading to supply cuts of up to 40 per cent for a range of industrial consumers and city gas distribution (CGD) companies.
Petronet LNG Ltd, India's largest LNG importer, has been unable to send ships to Qatar to transport LNG as the Strait of Hormuz – a narrow shipping route through which West Asian countries, including Qatar, export most of their oil and gas – is effectively closed.
Additionally, Qatar has shut down liquefied natural gas production at the world's largest export facility – which also supplied gas to India – after it was targeted in an Iranian drone attack.
In a stock exchange filing, Petronet said it had sent a force majeure notice to Qatari supplier, QatarEnergy, due to its inability to send ships.
QatarEnergy has also served a force majeure notice due to the inability to serve its buyer – Petronet LNG – due to the situation in the region.
"In light of the recent and ongoing war in the Middle East region involving Iran and Israel, vessels are presently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, the loading port of QatarEnergy," Petronet said.
"Considering the prevailing security situation and the material risks posed to maritime navigation, the company (Petronet) has issued a force majeure notice to QatarEnergy regarding its LNG tankers, namely Disha, Raahi, and Aseem."
Petronet said it has, in turn, issued corresponding force majeure notices to its downstream off-takers.
Qatar supplies 40 per cent of the 27 million tonnes a year of LNG that India imports annually.
