Petronet LNG Issues Force Majeure Notice Amid Strait Of Hormuz Disruption; Shares Fall Nearly 9%

Petronet LNG Limited has informed exchanges that it has issued a Force Majeure notice following disruptions to LNG vessel movement amid escalating hostilities in the Middle East.

Force Majeure Triggered Over Strait Of Hormuz Disruption

The company stated that due to the ongoing conflict involving Iran and Israel, vessels are currently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, the loading port operated by QatarEnergy.

In view of the security risks to maritime navigation, Petronet LNG has issued a Force Majeure notice to QatarEnergy in respect of its LNG tankers — Disha, Raahi and Aseem. QatarEnergy, in turn, has also indicated a potential Force Majeure event due to prevailing hostilities in the region.

Notice Issued To Off-Takers

Subsequently, Petronet LNG issued corresponding Force Majeure notices to its key off-takers under Gas Sale and Purchase Agreements. These include:

• GAIL (India) Limited
• Indian Oil Corporation Limited
• Bharat Petroleum Corporation Limited

The company clarified that the likely financial impact of the ongoing Force Majeure event cannot be estimated at this stage.

Additionally, acts of war are excluded under the business interruption insurance policies taken by Petronet LNG.

Petronet LNG Share Price Performance

As of 1:20 PM on March 4, 2026, shares of Petronet LNG were trading at ₹281.05, down ₹27.60 or 8.94% compared to the previous close of ₹308.65. The stock opened at ₹298.00 and touched an intraday high of ₹298.00 and a low of ₹271.75, reflecting significant selling pressure during the session.

Read More: ACME Solar Commissions Second Phase Of Rajasthan BESS Project.

Conclusion

The invocation of Force Majeure highlights the operational risks arising from geopolitical disruptions in critical energy transit routes. While the immediate financial implications remain uncertain, further developments in the region and clarity on LNG cargo movement are likely to influence the company’s near-term outlook.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.