Gas sales by Petronet LNG, GAIL dip by a quarter, firms to invoke force majeure with foreign companies

Following the imposition of a national lockdown since March 22, sales of natural gas by Petronet LNG and Gail India have dropped by 20-25 million metric standard cubic meter per day (mmscmd) or around 25%, as consumption across power, fertiliser, refineries, and city gas distribution (CGD) sectors have fallen substantially.

Given the 21-day lockdown, the two firms may also face issues in lifting the contracted cargoes arriving at ports in the near future and ask foreign suppliers for rescheduling of the shipments. The companies have already issued force majeure notices to their suppliers, which may allow them to renegotiate the scheduling of cargoes over the coming weeks and months.