Maharatna PSU stock GAIL India in focus after this update on LNG supply from Qatar Energy

Maharatna PSU stock GAIL India rebounded on Thursday, March 5, snapping its four-day losing streak even as the company informed bourses about supply disruptions from one of its long-term suppliers, Petronet LNG.

In an exchange filing earlier today, GAIL India said that Petronet LNG has issued a Force Majeure notice on March 3, 2026, under its Gas Sale and Purchase Agreement due to the escalating tensions in the Middle East, which has not only affected the Strait of Hormuz but also shut down Qatar's Ras Laffan facility.

Furthermore, QatarEnergy, PLL’s upstream LNG supplier, has also issued a communication indicating a potential Force Majeure event owing to the recent hostilities in the region.

Force majeure refers to an unforeseen event beyond a party’s control that prevents them from fulfilling contractual obligations.

In simple terms, if an unexpected situation occurs that makes it impossible to meet the terms of an agreement, a force majeure clause can protect the affected party from penalties or liability.

However, it clarified that LNG supplies to GAIL from other sources and suppliers are currently unaffected.

India imported 27 million metric tons of LNG in 2024/25, about half of its overall gas consumption, according to government data cited by Reuters. The bulk of the LNG comes from Qatar.

"Consequently, due to supply restrictions imposed by PLL, the allocation of LNG quantities to GAIL under the said contract has been reduced to zero with effect from 4th March 2026," the PSU company said in the filing.

GAIL also said that it is currently assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers. It clarified that at this stage, the potential impact of the ongoing Force Majeure situation cannot be quantified.

Petronet LNG, India's top gas importer, on Wednesday issued a force majeure notice to its supplier, QatarEnergy, and to local buyers like GAIL and Indian Oil Corporation, after its LNG tankers were unable to reach the LNG loading terminal at Ras Laffan, it said in an exchange filing.

GAIL and IOC have already reduced gas supplies to industrial customers, Reuters reported on Tuesday.

GAIL share price trend

GAIL share price gained as much as 1.87% to hit the day's high of ₹157.60. The large-cap PSU stock had lost 9% in the last four days of losses.

GAIL shares have slumped 8.65% on a year-to-date (YTD) basis, while they remain in the red in the last one year, shedding 1.3%. On a longer time frame of three and five years, the Maharatna PSU stock has delivered 49% and 60% gains, respectively.

(With inputs from Reuters)

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.