Middle East war impact: Petronet, GAIL decline up to 5% as Qatar Energy halts production at a key LNG facility

Petronet LNG, Adani Total Gas see profit booking in trade.

• Gas firm shares dropped 8% after QatarEnergy halted LNG.
• Adani Total Gas hiked industrial prices due to supply issues.
• Gujarat Gas to restrict supplies to industries from Thursday.

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Shares of gas-related companies, including Petronet LNG, GAIL (India) and Gujarat State Petronet, fell up to 6 percent in Monday’s trade after QatarEnergy halted production at a key liquefied natural gas (LNG) facility amid escalating tensions in the Middle East.

QatarEnergy declared force majeure to its affected buyers last week after suspending production of LNG and associated products. Qatar’s Ras Laffan LNG plant, the world’s largest LNG facility, appears to have remained largely intact after its unprecedented closure last week. However, any restart and resumption of deliveries could take weeks or even months, the country’s energy minister told the Financial Times.

Shares of Gujarat State Petronet were among the biggest losers, declining up to 8 percent during the session.

Gujarat Gas, which supplies gas to domestic and industrial consumers, has declared force majeure and will restrict gas supplies to industries from Thursday.

The stock was followed by GAIL (India) and Gujarat Gas, which declined 5.11 percent and 5.72 percent, respectively.

Shares of Petronet LNG fell about 5 percent.

Meanwhile, Adani Total Gas has raised prices for supplies to industrial clients, citing lower gas availability due to the conflict in the Middle East.

Countries in the West Asia account for around 30 percent of global crude oil output and about 20 percent of global LNG production, much of which is transported through the Strait of Hormuz.

India imports about 85 percent of its crude oil requirement and roughly half of its LNG needs. Of this, around 40-50 percent of crude oil and 50-60 percent of LNG shipments pass through the Strait of Hormuz.

According to CRISIL, most shipping vessels have halted passage through the strait since March 1, 2026, citing heightened risks.

"Any prolonged disruption of this trade route will have a bearing on global crude oil and LNG availability, and their prices," it said.

India also imports about two-thirds of its liquefied petroleum gas (LPG) requirement, largely from the Middle East.

Higher global prices and rising LNG costs could also increase the government’s fertiliser subsidy burden.

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