Gujarat Gas Issues Force Majeure Notice As Middle East Conflict Disrupts LNG Supply; Shares Fall 5.59% 

Gujarat Gas Ltd informed exchanges that it has invoked force majeure provisions under its gas supply agreements after disruptions in re-liquefied natural gas (R-LNG) availability linked to the ongoing conflict in the Middle East. Shares of Gujarat Gas Ltd declined 5.59% to ₹394.25 as of 1:18 pm IST

Force Majeure Triggered After LNG Availability Tightens

According to the company’s Regulation 30 disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the availability of R-LNG has become severely constrained amid the evolving geopolitical situation in the Middle East.

The company stated that it has issued force majeure notices to its industrial customers in accordance with the provisions embedded within existing Gas Supply Agreements.

Operationally, the move allows the company to restrict the Daily Contracted Quantity (DCQ) of gas supplied to affected customers. The restriction will take effect from 6 March 2026, as per the exchange filing signed by Sandeep Vishnuprasad Dave, Company Secretary.

A force majeure clause is typically activated when unforeseen events beyond contractual control such as war, natural disasters, or supply disruptions prevent a party from fulfilling contractual obligations. Once invoked, it may permit temporary suspension or modification of supply commitments without triggering contractual penalties.

In the filing, the company noted an additional constraint: acts of war are not covered under the insurance policies held by Gujarat Gas.

Management added that the financial or operational impact cannot yet be quantified, describing the situation as an ongoing event while confirming that developments are being monitored closely.

Share Price Snapshot On March 5

Share price of Gujarat Gas Ltd (NSE: GUJGASLTD) declined during Thursday’s session following the disclosure.

As of 1:18 pm IST on March 5, the stock traded at ₹394.25, down ₹23.35 or 5.59% from the previous close of ₹417.60, according to exchange-linked market data.

The session saw the stock open at ₹404.00, touch a high at the same level, and slip to a low of ₹390.00 so far.

The decline suggests investor concern around industrial gas demand fulfilment, particularly in Gujarat’s chemicals, ceramics and manufacturing clusters that rely heavily on pipeline gas supplied by the company.

Company Background

Gujarat Gas Ltd is among India’s largest city gas distribution (CGD) companies, supplying piped natural gas (PNG) and compressed natural gas (CNG) across multiple districts in Gujarat and neighbouring regions.

Industrial customers constitute a significant portion of the company’s gas offtake, especially in Morbi’s ceramic industry, textile clusters, and chemical manufacturing hubs. These sectors typically depend on R-LNG sourced through India’s LNG import terminals, making supply conditions sensitive to global LNG market disruptions.

At the time of writing, the company has not disclosed the extent of DCQ reductions or the duration for which the force majeure conditions may remain in effect.

Conclusion

The exchange disclosure marks a rare instance of a force majeure invocation within India’s city gas distribution segment, underscoring the knock-on effects of geopolitical conflict on downstream energy supply chains.

With LNG availability tightening and insurance coverage excluding war-related disruptions, the operational implications for Gujarat Gas and its industrial consumers remain uncertain. Further updates may follow through additional exchange filings as supply conditions evolve.

Source:

• https://nsearchives.nseindia.com/corporate/GUJGASLTD_04032026181719_1546SECFM04032026.pdf
• https://www.nseindia.com/get-quote/equity/GUJGASLTD/Gujarat-Gas-Limited