Petronet LNG shares tank over 9 pc

New Delhi, Mar 4 (PTI) Shares of gas importer Petronet LNG Ltd on Wednesday dived over 9 per cent as Qatar halted liquefied natural gas (LNG) production after its facilities came under attack amid the ongoing West Asia conflict, disrupting supplies to India and squeezing feedstock availability for key domestic sectors.

The stock dropped 9.27 per cent to end at Rs 280.50 on the BSE. During the day, it tanked 11.69 per cent to Rs 273.

At the NSE, shares of the firm fell by 9.28 per cent to Rs 280. Intra-day, the stock tumbled 11.95 per cent to Rs 271.75.

India, which depends on long-term LNG contracts with Qatar for a significant share of its gas needs, has seen a temporary suspension of cargoes, leading to supply cuts up to 40 per cent for a range of industrial consumers and city gas distribution (CGD) companies.

Petronet LNG Ltd, India's largest LNG importer, hasn't been able to send ships to Qatar to ferry LNG as the Strait of Hormuz - a narrow shipping route through which West Asian countries, including Qatar, export most of their oil and gas - is all but closed.

Additionally, Qatar has shut down liquefied natural gas production at the world's largest export facility - which also supplied gas to India - after it was targeted in an Iranian drone attack.

In a stock exchange filing, Petronet said it has sent force majeure notice to Qatari supplier, QatarEnergy for inability to send ships.

QatarEnergy too has served a force majeure notice for inability to serve its buyer - Petronet LNG - due to hostilities in the region.

"In light of the recent and ongoing war in the Middle East region involving Iran and Israel, vessels are presently unable to safely transit through the Strait of Hormuz to reach Ras Laffan, the loading port of QatarEnergy," Petronet said.

"Considering the prevailing security situation and the material risks posed to maritime navigation, the company (Petronet) has issued a force majeure notice to QatarEnergy in respect of its LNG tankers, namely Disha, Raahi, and Aseem.

Petronet said it has, in turn, issued corresponding force majeure notices to its downstream off-takers.

Qatar supplies 40 per cent of the 27 million tonnes a year of LNG that India imports annually. PTI SUM SUM MR