India’s largest LNG importer issues force majeure notices as Middle East conflict blocks key shipping routes, raising energy security concerns.
MUMBAI: India’s top liquefied natural gas importer has warned of operational disruptions due to the war in the Middle East, raising concerns about tighter energy supplies for the world’s most populous nation.
Petronet LNG stated in a stock exchange notification that vessels were unable to safely transit the Strait of Hormuz to reach QatarEnergy’s loading port at Ras Laffan.
The Indian importer, for which QatarEnergy is a key supplier, has consequently issued a force majeure notice to the Qatari firm regarding its LNG tankers named Disha, Raahi, and Aseem, and has also received a similar notice from QatarEnergy.
Petronet LNG has also sent force majeure notices to its major domestic customers, including GAIL (India), Indian Oil Corporation, and Bharat Petroleum Corporation.
The company said the likely impact of the disruption cannot be estimated at this time, offering no further details.
Local media reports indicate several domestic gas companies have already warned industrial customers of a small cutback in supplies.
India, which relies heavily on oil and gas imports to meet its energy needs, warned that the war could have serious consequences for its economy.
The country’s petroleum ministry has sought to allay concerns by stating that national reserves are reasonably comfortable and that phased measures may be adopted if required to mitigate the fallout.
The Hindu newspaper, quoting unidentified sources, reported that India has crude oil reserves for 25 days and an LNG supply for the next two to three weeks.
Experts say India and other South Asian nations like Bangladesh and Sri Lanka are especially vulnerable to the effects of rising oil prices.
Analysts at BMI, a unit of Fitch Solutions, said Sri Lanka will face among the heaviest drags on GDP due to its existing external financial pressures.
They added that India will face the next tier of pain given its high crude import dependence.
The Sun Malaysia
