Tamilnadu Petroproducts shuts plant due to LPG shortage, cites force majeure

Industrial chemicals maker Tamilnadu Petroproducts Ltd, on Tuesday, March 17, said it has temporarily shut its HCD plant to comply with the government’s order to prioritise using crude-based petroleum products towards LPG production.

India has been grappling with an LPG shortage due to the ongoing war in West Asia, and particularly due to Iran’s closure of the Strait of Hormuz.

In a regulatory update, the company said the shutdown is a force majeure event and that it cannot quantify the impact at this stage. It is taking steps to restart operations and will update exchanges on any material developments.

The Ministry of Petroleum and Natural Gas asked refiners and fuel retailers to prioritise LPG production. That move halted propylene supplies, disrupting operations at its propylene oxide (PO) unit in Manali.

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In January, the company reported positive performance in December quarter earnings. Consolidated net profit was at ₹1,002 crore, up from ₹20.8 crore in the year-ago period. On a sequential basis, profit rose 35% from ₹731 crore in the September quarter.

Shares of the company closed at ₹81.50 apiece, which is 0.22% down for the day.

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