Qatar stopped LNG production, shares of Petronet and GAIL fell by 12%, know the condition of 6 companies and what will be the impact on your pocket: – ..
News India Live, Digital Desk: Amidst the ongoing Iran-Israel war in the Middle East, Qatar’s government company ‘QatarEnergy’ has stopped production after drone attacks on its main plants. India meets almost its needs 40% to 45% LNG Imports from Qatar. As soon as the market opened this morning after the news of supply stoppage, there was a storm of selling in the gas sector shares.
1. There was the biggest stampede in the shares of these 6 companies (Top Losers)
The list of 6 main companies whose shares have fallen by 5% to 12% in the market today is given below:
| Company Name | Stock decline (approx.) | main reason |
|---|---|---|
| PetronetLNG | 9% – 12% | It has the highest long-term supply agreement with Qatar. |
| GAIL (India) | 5% – 7% | The cut in gas supply has affected its trading volume. |
| Gujarat Gas | 6% – 8% | There is a possibility of 10-30% cut in industrial supply. |
| GSPL | 5% – 6% | Concern about decreasing gas transmission volume. |
| Indraprastha Gas (IGL) | 4% – 5% | Pressure on margins due to increase in input costs. |
| Adani Total Gas | 4% | Supply chain disruptions and surge in global gas prices. |
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2. What is ‘Force Majeure’ and why is it affecting? (Force Majeure Impact)
Qatar has declared ‘force majeure’, meaning it is freed from its legal obligation to supply gas as per its contract due to war-like circumstances.
Spot market fire: Due to long-term supply disruptions, Indian companies are now forced to buy gas from the ‘spot market’, where prices $25 per mmBtu This is almost double the normal rate.
Strait of Hormuz: Insurance and shipping costs have also increased 3 times due to Iran’s threat to close this route.
3. Crisis on industries: 10% to 40% cuts (Industrial Cuts)
Petronet and GAIL have already warned their industrial customers:
Supply cut: In gas supplied to fertilizer, steel and power generation units. 10% to 40% Reduction till has been started.
Priority: At present the remaining gas can only be CNG (for vehicles) and PNG (for domestic kitchen) is being kept safe.
4. Experts’ opinion: Will this decline increase further? (Expert View)
Trade experts believe that if Qatar’s production remains closed for more than a week, India’s Inflation May increase. However, India has 2-3 weeks reserve But due to uncertainty, there will be an atmosphere of fear in the market.
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