Middle East LNG disruption may hit GNFC neem urea production as RLNG supply is cut

Core Viewpoint - Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) faces potential production challenges for its neem-coated urea due to curtailed supplies of re-gasified liquefied natural gas (RLNG) linked to ongoing conflicts in West Asia [1][2] Group 1: Supply Chain Impact - GNFC's RLNG supplier, GAIL (India) Limited, has issued a force majeure notice due to transit constraints affecting LNG supplies from upstream supplier Petronet LNG Limited [2] - The allocation of RLNG to GNFC has been restricted to 60% of the Daily Contracted Quantity (DCQ) starting from March 6, 2026, which will specifically impact neem urea production [2] Group 2: Company Overview - Established in 1976 and promoted by the Government of Gujarat, GNFC is a diversified chemicals and fertilizers company with manufacturing facilities in Bharuch, Gujarat [3] - The company produces nitrogenous fertilizers such as urea and a range of industrial chemicals, including methanol, formic acid, acetic acid, and ammonium nitro phosphate, which are utilized in agriculture and industrial sectors [3] - Natural gas is a critical feedstock for urea production, making fertilizer manufacturers sensitive to fluctuations or disruptions in LNG supply [3] Group 3: Monitoring and Future Outlook - GNFC is closely monitoring the situation and will keep stock exchanges informed of any material developments [3] - The company has stated that the likely impact of the force majeure situation cannot be estimated at present as the event remains ongoing [4]