Logistics

Petronet LNG invoked force majeure on nine long-term LNG cargoes amidst Covid-19 lockdown

Our Bureau New Delhi | Updated on August 11, 2020

Petronet LNG Ltd (PLL) has invoked force majeure on nine long-term Liquified Natural Gas (LNG) cargoes amidst the COVID-19 lockdown induced demand slump.

"Owing to Covid 19 pandemic and consequent reduced Regasified-LNG (RLNG) demand during the lockdown period, PLL was constrained to invoke Force Majeure for nine long-term cargos with its suppliers and discussion on the same are ongoing. During the period, PLL also received requests under regasification contracts for deferment of third party cargos to subsequent months," the company said in a statement to the BSE.

"Due to nation-wide lockdown imposed by Government of India from the last week of March 2020, the off-take of RLNG from Dahej terminal was reduced. This decline in throughput was due to partial or full shutdown of number of industries, refineries, power plants among others," the company said.

The shutdown reduced off-take of natural gas as the demand of their respective products decreased.

"Post first week of June’20 when the lock-down 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 tonne per annum," the company added.

Published on August 11, 2020

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