Gujarat Gas on Wednesday said the conflict in the Middle East region has impacted the gas supply, leading to reduced availability of regasified liquefied natural gas (R-LNG).
Gujarat Gas has invoked Force Majeure provisions under its Gas Supply Agreements with industrial customers.The company said ‘act of war’ is not covered under the insurance that it has taken. It said it is difficult to ascertain the impact of the Iran-Israel war.
Meanwhile, Qatar Energy too declared force majeure to affected buyers after announcing a halt in product. When force majeure is invoked, the supplier can suspend deliveries without penalties.
Qatar Energy has formally notified its buyers that it may be unable to meet the supply commitments due to circumstances outside its control.
India gets 50% of its LNG from Qatar.
Shares of Gujarat Gas were down 6.1% at ₹392 apiece around 9.30 am on Thursday. The stock has given up all the gains it had made during Wednesday’s session.
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