Petronet LNG Slumps on QatarEnergy Supply Uncertainty

Petronet LNG's stock price plummeted nearly 4% on July 23 to ₹269 per share, following reports that QatarEnergy might extend its force majeure declaration for liquefied natural gas (LNG) shipments until mid-October.

A force majeure is a legal clause that allows companies to pause or cancel contractual obligations due to circumstances beyond their control. This move could severely impact India's energy supply stability, as Qatar is one of the country's major sources for LNG imports, accounting for approximately 35% to 45% of total volume.

The uncertainty surrounding QatarEnergy's supply has been fueled by escalating tensions in the Middle East, which have disrupted shipping routes through the Strait of Hormuz. As global supplies tighten, both Asian and European buyers are competing for limited volumes, leading to a rise in gas prices across international markets.