GAIL's LNG acquisition from Petronet cut to zero amid Strait of Hormuz restrictions

Core Insights - The U.S. and Israel's airstrikes on Iran have significantly disrupted fuel shipments from the Gulf, impacting India's liquefied natural gas (LNG) imports from Qatar [1][5] - The situation has led to a near halt in the transit of oil and LNG through the Strait of Hormuz, a critical passage for global energy supply [1][5] - GAIL (India) Limited has reported that LNG supplies under its long-term contract with Petronet LNG Limited have been reduced to zero due to a force majeure declaration [4][5] Company Impact - GAIL is currently assessing the potential supply curtailment for its downstream customers as a result of the ongoing situation [1][4] - Petronet LNG Limited has issued a force majeure notice citing navigation restrictions in the Strait of Hormuz and possible disruptions at Qatar's Ras Laffan liquefaction facility [4][5] - The allocation of LNG quantities to GAIL under the contract has been reduced to zero effective March 4, 2026, due to these supply restrictions [4][5] Industry Context - The Strait of Hormuz has been closed for over four days for tanker traffic, which is responsible for transporting approximately 20% of the world's crude and refined petroleum products [5] - Iran's military actions, including drone attacks and missile launches, have further escalated tensions and disrupted shipping in this vital energy corridor [5]