Key insights
- Petronet LNG expects full LNG supply from Qatar to resume after Middle East stabilization. Disruptions occurred due to Strait of Hormuz closure and attacks on Qatari LNG production. While Petronet hopes supplies won't be cut, Qatar declared force majeure for May deliveries, creating uncertainty. This could lead to higher natural gas prices globally, but the impact on US equities is expected to be minimal.
Investing.com -- India’s top gas importer Petronet LNG (NS:PLNG) expects to receive its full contracted amount of liquefied natural gas from Qatar once the geopolitical situation in the Middle East stabilises, chief executive A. K. Singh said on Monday.
Qatar, India’s largest LNG supplier, has a contract to supply 7.5 million metric tons per year of LNG to Petronet, equivalent to 9-10 cargoes per month.
Supplies were halted in March following the closure of the Strait of Hormuz, while Iran struck two of Qatar’s 14 LNG production trains, forcing it to declare force majeure.
Qatar has said repairs will sideline 12.8 million tons per year of LNG for three to five years.
Singh said Petronet had not been receiving cargoes from the trains that were damaged in attacks.
"We hope and expect our supplies will not be cut," Singh told a press conference, adding that Qatar had notified the company of force majeure for May deliveries.
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