2 months ago
45
ARTICLE AD BOX
Shares of Petronet LNG Ltd plunged astir 12% connected Wednesday aft reports that Qatar, India’s apical supplier of imported earthy gas, had declared unit majeure pursuing a halt successful accumulation amid the ongoing situation successful Middle East.
On the BSE, the banal dropped 11.69% to Rs 273, portion connected the NSE it fell 11.95% to Rs 271.75. According to sources, the accumulation halt has forced cuts successful supplies to industries of up to 40%. Qatar provides astir 40% of the astir 27 cardinal tonnes of liquefied earthy state (LNG) India imports each year, serving sectors ranging from powerfulness procreation and fertiliser accumulation to piped cooking state and CNG distribution. Around 1:30 pm, the banal was trading astatine 282.45, down 26.70 oregon 8.64% connected the Bombay Stock Exchange.
On the NSE, the stock stood astatine 282.30, shedding 26.35 points oregon 8.54%. Petronet LNG has informed state marketers that Qatar has stopped its LNG accumulation aft Iran continued strikes connected Gulf countries successful retaliation for Israeli and US attacks. The announcement sent shares of different state distributors little arsenic well, with Mahanagar Gas down 8.50%, Indraprastha Gas falling 5%, and Gujarat Gas slipping 4% connected the BSE. The strikes person besides brought shipments of lipid and LNG done the Strait of Hormuz adjacent to a standstill, pushing planetary vigor prices higher and sharply raising war-risk security and shipping costs.
Iran controls the Strait, a captious way done which astir fractional of India’s crude lipid imports and much than fractional of its LNG supplies pass, including shipments from Qatar and the UAE. Petronet has reportedly notified its offtakers, GAIL (India) Ltd and Indian Oil Corporation (IOC), astir the disruption. Gas marketers person responded by reducing concern supplies portion maintaining CNG retail flows, with cutbacks ranging from 10 to 40%.
Indian buyers of liquefied earthy state are present exploring alternate sourcing options aft supplies from Qatar were disrupted owed to the Iranian drone onslaught that forced the Gulf shaper to halt output.
As the world’s second-largest LNG exporter, immoderate prolonged outage successful Qatar is expected to summation planetary contention for disposable cargoes. Qatar remains India’s biggest LNG supplier, accounting for astir fractional of the country’s imports past year, according to vessel-tracking information compiled by Bloomberg. Under its semipermanent contract, Petronet buys 8.5 cardinal tonnes per annum of LNG from Qatar and besides purchases further supplies from the spot market. Besides Petronet, IOC and different companies besides clasp LNG import agreements with the UAE.
