Shares of India’s top gas companies faced a sharp fall on Monday after QatarEnergy paused operations at a major liquefied natural gas (LNG) plant. The move has sparked concerns over supply disruptions, affecting the Indian energy market.
Market Performance
- Gujarat State Petronet dropped nearly 8%, leading losses in the sector.
- GAIL (India) fell 5.11%, reflecting broader worries over LNG shortages.
- Gujarat Gas declined 5.72%, after announcing a cut in industrial gas supply.
- Petronet LNG lost 5%, reacting to uncertainties in import schedules.
The declines illustrate how exposed India’s gas industry is to geopolitical tensions in the Middle East.
Main News: QatarEnergy Halts Production
QatarEnergy declared force majeure last week after halting output at its Ras Laffan LNG facility—the world’s largest. The plant remains largely intact, but resuming operations could take several weeks or months, according to reports.
The stoppage has forced companies across India to rethink their supply and distribution plans. Gujarat Gas, for instance, will limit industrial gas deliveries from Thursday, directly impacting manufacturing and processing units.
Company Details
Gujarat State Petronet
- Loss: ~8%
- Business: Gas transmission and distribution in Gujarat
- Impact: Supply interruptions affect its operational efficiency
GAIL (India)
- Loss: 5.11%
- Sector: Gas processing, transmission, and distribution
- Effect: Domestic energy supply under pressure
Gujarat Gas
- Loss: 5.72%
- Action: Declared force majeure; industrial gas supply reduced
- Implication: Higher costs for companies reliant on gas
Petronet LNG
- Loss: 5%
- Role: Key LNG importer for India
- Concern: Dependent on uninterrupted Middle East shipments
Adani Total Gas
- Response: Increased prices for industrial clients due to lower gas availability
Broader Implications
West Asia plays a vital role in global energy markets:
- Supplies about 30% of the world’s crude oil
- Accounts for roughly 20% of global LNG production
- Much of this output moves through the Strait of Hormuz
For India:
- Imports nearly 85% of crude oil requirements
- Around 50% of LNG needs come from the Middle East
- Roughly two-thirds of LPG is imported from the region
Since March 1, 2026, most vessels have halted passage through the Strait of Hormuz due to heightened risks. This stoppage could tighten global crude and LNG supplies, leading to higher prices.
Rising LNG costs may also push up India’s fertiliser subsidy burden, as imported inputs for urea and other fertilizers become more expensive.
Summary
Monday’s trading session highlights how swiftly geopolitical events in the Middle East can affect India’s energy sector. Stocks of Petronet LNG, GAIL, and Gujarat Gas have reacted sharply to supply uncertainties.
With industrial gas cuts and price adjustments already in place, the impact is spreading across multiple sectors. The situation underscores the reliance of India’s energy security on the stability of Middle Eastern supplies. Market participants will watch closely for updates on the Ras Laffan facility and the resumption of normal LNG shipments.
Source: Moneycontrol
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