Petronet invokes force majeure on 9 cargoes as lockdown cuts offtake

Topics Petronet

Petronet LNG Ltd (PLL), the country's biggest gas importer, on Tuesday said it invoked the force majeure on nine cargoes after COVID-19 lockdown cut offtake by consumers.

Petronet imports natural gas in its liquid form (LNG) from countries such as Qatar and Australia and pipes it to users such as power plants and fertiliser units after re-converting it into its gaseous state.

Petronet invoked the force majeure on eight liquefied natural gas (LNG) cargoes of Qatar and one from Exxon for loading from March to May.

"Due to a nationwide lockdown imposed by the Government of India from the last week of March 2020, the offtake of regasified-LNG (RLNG) from the Dahej terminal (in Gujarat) was reduced.

"This decline in throughput was due to partial/full shutdown of a number of industries, refineries, power plants, etc, which reduced their offtake of natural gas as the demand of their respective products decreased," Petronet said in a regulatory filing.

Average gas send-out from the Dahej terminal fell to less than 60 per cent of the capacity in April, down from over 88 per cent in the previous month.

"Post first week of June when the lockdown was relaxed, the demand of RLNG has seen gradual recovery and since then, PLL's Dahej terminal is operating at its full capacity of 17.5 million tonnes per annum (63 million standard cubic meters per day)," it said.

Before COVID 19, average send-out during January-February was around 58 mmscmd (92 per cent of the capacity) at the Dahej terminal and 3.57 mmscmd (20 per cent) at 5 million tonnes a year at the Kochi terminal in Kerala.

"Owing to the COVID-19 pandemic and a consequent reduced RLNG demand during the lockdown period, PLL was constrained to invoke the force majeure for nine long-term cargoes with its suppliers and discussion on the same are ongoing," the company said without giving details.

During the said period, PLL also received requests under regasification contracts for deferment of third-party cargoes to subsequent months, it added.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel