New Delhi: Petronet LNG Limited (PLL) has invoked force majeure on LNG cargo deliveries after vessels were unable to safely transit to Ras Laffan amid hostilities around the Strait of Hormuz, triggering supply disruptions across India’s gas market. In a regulatory filing, Petronet said it “has issued a Force Majeure Notice to QatarEnergy in respect of its LNG tankers, namely Disha, Raahi, and Aseem,” after maritime restrictions prevented vessels from sailing through the Strait of Hormuz to Ras Laffan.
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The supplier, Qatar Energy, also issued a notice indicating a potential force majeure event linked to the same disruptions.
Petronet said it had issued corresponding force majeure notices to its off-takers — including GAIL (India) Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited — adding that the impact “cannot be estimated at this point of time.”
Following the disruption, GAIL (India) Limited said the allocation of LNG under its contract with Petronet had been cut to zero. “The allocation of LNG quantities to GAIL under the said contract has been reduced to zero with effect from March 4, 2026,” the company said in a stock exchange filing, adding that it is “assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers.”
An oil ministry official said as much as 60 million standard cubic metres per day (mmscmd) of gas supplies may be impacted due to the disruption.
India consumes roughly 195 mmscmd of natural gas, used for electricity generation, fertiliser production, transport fuel in the form of compressed natural gas (CNG), household cooking and industrial feedstock.
Supplies from alternative sources are being arranged to mitigate the shortfall, with fertiliser plants expected to receive priority given the approaching sowing season, along with cooking gas distribution and power generation.
The supply squeeze has already begun to ripple through downstream markets. Adani Total Gas Ltd has nearly tripled gas prices for large industrial consumers after upstream LNG curbs forced the company to tap higher-priced replacement supplies.
According to a company memo cited by sources, the city gas distributor raised industrial gas prices to about Rs 119 per standard cubic metre from Rs 40. “Due to recent geopolitical developments impacting LNG supply routes, ATGL has received upstream gas curtailment, leading to operational constraints,” the company said.
Several industrial users facing curtailed supplies have begun shifting to alternative fuels such as fuel oil, naphtha or petroleum coke, which can cost more than twice the normal gas price.
The disruption stems from escalating military conflict in West Asia that has effectively halted tanker movements through the Strait of Hormuz — a critical global energy chokepoint through which about one-fifth of the world’s petroleum liquids and large volumes of LNG pass.
Countries in the Middle East account for roughly 30 percent of global crude oil production and about 20 percent of global LNG supply, most of which transits the strait.
India is particularly exposed because it imports around 88 percent of its crude oil and about half of its LNG, with roughly 50–60 percent of LNG shipments passing through the corridor.
Energy markets have already reacted sharply. Brent crude has climbed to around USD 84 per barrel from an average of USD 66–67 in January–February 2026, while Asian spot LNG prices have jumped from about USD 10 per mmBtu to USD 24–25 per mmBtu.
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Analysts say India faces both supply and price risks if the disruption persists. Kpler analyst Sumit Ritolia said: “India sits among the most exposed buyers in the region. As per Kpler tracking, more than half of its LNG imports come via Hormuz (Qatar and the UAE), making the country particularly vulnerable to both physical supply disruptions and price shocks.”
“This dependence matters because many of India’s long-term LNG contracts are linked to oil prices, while any additional volumes typically need to be sourced from the spot market — often at significantly higher prices during supply disruptions.”
Replacement cargoes could potentially come from the United States, West Africa, Australia or Russia, but longer shipping distances would raise freight costs and extend delivery times, he added.
In the near term, industry participants expect India to prioritise gas supply for fertiliser plants, cooking gas distribution and power generation while assessing curtailments for industrial users and smaller city gas distributors.
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