Petronet LNG Share Price Fall Nearly 10% After Force Majeure Notices Amid Middle East Hostilities

On Wednesday, shares of Petronet LNG Limited fell 9.15 per cent to Rs 280.40 per share from its previous closing of Rs 308.65 per share. The stock’s 52-week high is Rs 326.50 per share and its 52-week low is Rs 263.50 per share. Shares of Petronet LNG Limited tanked as much as 8 per cent Intraday to Rs 284 on the BSE after the company informed exchanges that it has issued a force majeure notice to QatarEnergy in respect of its LNG tankers, Disha, Raahi and Aseem. In parallel, QatarEnergy has also indicated a potential force majeure event due to ongoing hostilities in the region.

The company said the move follows supply disruptions arising from the ongoing war in the Middle East involving Iran and Israel. In a regulatory filing, it stated that the vessels are currently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, QatarEnergy’s loading port, due to prevailing security risks and material threats to maritime navigation.

Consequently, Petronet LNG has issued corresponding force majeure notices to its key off-takers, GAIL (India) Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited, under the relevant Gas Sale and Purchase Agreements on March 3, 2026.

The company clarified that acts of war are excluded under its business interruption insurance coverage. It added that the likely impact of the ongoing force majeure event cannot be assessed at this stage and that it is closely monitoring developments and will inform stock exchanges of any material updates.

Force majeure, a French term meaning “superior force”, is a standard contractual provision that releases parties from liability or performance obligations when an exceptional and unforeseeable event beyond their control, such as war, strikes, riots, crime, epidemics or natural disasters, makes it impossible to fulfil contractual commitments.

The company has a market cap of over Rs 42,060 crore. The stock price has delivered over 25.70 per cent returns in the last three years.

Disclaimer: The article is for informational purposes only and not investment advice.