Shares of Gujarat Gas Limited declined more than 6% in early morning trading on March 5 after the company warned about supply disruptions linked to the escalating conflict in the Middle East. The development has raised concerns about the availability of liquefied natural gas supplies reaching India from the Persian Gulf region.
The company informed exchanges that it has issued force majeure notices to several industrial customers after facing severe constraints in the availability of re-gasified liquefied natural gas (R-LNG). According to the company, the disruption has emerged due to developments in the Middle East that are affecting LNG shipment flows and supply availability.
The escalating geopolitical tensions in the Persian Gulf have begun to impact global energy supply chains, particularly shipments of LNG that are crucial for India’s gas distribution companies. Gujarat Gas said the disruption has significantly affected its ability to supply gas to certain industrial customers under existing contracts.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.