Gujarat Gas Declares Force Majeure Over LNG Supply Disruption

09 Mar 2026 CW Team

It indicated that disruptions at exporting terminals and port congestion had delayed multiple cargoes destined for its regasification facilities. Operational adjustments will include prioritising supplies to critical industrial users and rationing non essential deliveries where necessary. Compressed natural gas stations and piped supplies for households may face temporary curtailments in some regions depending on allocation decisions. The company is pursuing alternative procurement and examining logistics routes to source replacement cargoes.

From a legal perspective the invocation of force majeure will alter short term contractual obligations while assessments are completed. The company is engaging with regulators and customers to explain the operational impact and to seek approvals for any temporary supply changes. Inventory management and transfers from other terminals form part of the immediate response to bridge gaps until normal trade lanes reopen. Financial impacts will depend on the duration of the disruption and on the ability to procure substitute supplies at commercial rates.

Market participants will monitor announcements closely as supply constraints could exert upward pressure on domestic gas prices and affect energy intensive industries. The company has committed to periodic updates for investors and customers while contingency measures are implemented and cargo schedules are revised. Restoring a stable flow of LNG will rely on the resolution of broader geopolitical disruptions and on the resumption of maritime logistics. Stakeholders are advised that timelines remain uncertain and that efforts are focused on minimising disruption to essential services.

Gujarat Gas Limited (Gujarat Gas) has declared force majeure on certain supply contracts after the conflict in the Middle East disrupted shipments of liquefied natural gas (LNG). The declaration covers scheduled imports that have been delayed or cancelled and aims to shield the company from contractual liabilities while logistics are restored. The move follows an abrupt curtailment of cargoes that formed a material part of the company's short term supply mix. The company has notified counterparties and initiated contingency planning. It indicated that disruptions at exporting terminals and port congestion had delayed multiple cargoes destined for its regasification facilities. Operational adjustments will include prioritising supplies to critical industrial users and rationing non essential deliveries where necessary. Compressed natural gas stations and piped supplies for households may face temporary curtailments in some regions depending on allocation decisions. The company is pursuing alternative procurement and examining logistics routes to source replacement cargoes. From a legal perspective the invocation of force majeure will alter short term contractual obligations while assessments are completed. The company is engaging with regulators and customers to explain the operational impact and to seek approvals for any temporary supply changes. Inventory management and transfers from other terminals form part of the immediate response to bridge gaps until normal trade lanes reopen. Financial impacts will depend on the duration of the disruption and on the ability to procure substitute supplies at commercial rates. Market participants will monitor announcements closely as supply constraints could exert upward pressure on domestic gas prices and affect energy intensive industries. The company has committed to periodic updates for investors and customers while contingency measures are implemented and cargo schedules are revised. Restoring a stable flow of LNG will rely on the resolution of broader geopolitical disruptions and on the resumption of maritime logistics. Stakeholders are advised that timelines remain uncertain and that efforts are focused on minimising disruption to essential services.

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