QatarEnergy said on Monday that it has stopped production of LNG due to military attacks on its operating facilities in Ras Laffan and Mesaieed.
Qatar’s Ministry of Defence said in a separate statement that “Qatar was attacked by two drones launched from the Republic of Iran.”
Petronet has a long-term SPA with QatarEnergy for around 7.5 mtpa of LNG on an FOB basis.
The Indian company transports these volumes from Ras Laffan in Qatar to India via three dedicated LNG carriers, namely Disha, Raahi, and Aseem.
Petronet said in a stock exchange filing on Tuesday that “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 (also referred to as the Gulf of Hormuz) to reach Ras Laffan, the loading port of QatarEnergy.”
Considering the prevailing security situation and the material risks posed to maritime navigation, Petronet has issued a force majeure notice to QatarEnergy in respect of its three LNG tankers.
Furthermore, QatarEnergy issued a notice “indicating a potential event of force majeure due to the hostilities prevailing in the region.”
Consequently, Petronet has issued corresponding force majeure notices to its offtakers, namely GAIL, Indian Oil (IOCL), and Bharat Petroleum (BPCL), under the relevant gas sale and purchase agreements on March 3, it said.
“Acts of war is also excluded under business interruption insurance covers taken by Petronet,” the company said.
“The likely impact of force majeure, which is currently an ongoing event, cannot be estimated at this point in time,” Petronet said.
Petronet operates the 17 mtpa Dahej LNG terminal and expects to launch an additional 5 mtpa capacity at the facility this month.
The company also operates the 5 mtpa Kochi facility.
