November 5, 2026: Petronet LNG is contesting arbitration claims totalling ₹6.2542 billion, plus applicable taxes, from the owners of three dedicated liquefied natural gas (LNG) carriers whose operations have remained largely suspended since March 2026 following conflict-related disruption in the Middle East.

The company disclosed the claims in its financial results for the quarter ended 30 September 2026. It has not recognised a provision, maintaining that the demands are not sustainable under the relevant time charter agreements. The arbitration outcome and any resulting financial liability remain undetermined.

Which vessels are involved?

The dispute concerns Disha, Raahi and Aseem, chartered by Petronet to transport LNG from Qatar to India.

The vessels operate under long-term agreements with India LNG Transport Company (No.1) Ltd, India LNG Transport Company (No.2) Ltd and India LNG Transport Company (No.3) Ltd, respectively.

Their operations have been suspended since 2 March, apart from one vessel deployed for approximately seven days in June. Claims for vessel hire and associated costs increased from ₹893 million at the end of March to ₹6254.2 million by the end of September. The disclosed amount represents claims under dispute, rather than an arbitration award or an admitted payment obligation.

Petronet’s earlier financial disclosure traced the disruption to armed conflict and related hostilities beginning on 28 February 2026. The company said these events affected navigation through the Strait of Hormuz and regional LNG loading operations.

Petronet issued a force majeure notice to QatarEnergy LNG S. (2) on 2 March under its LNG sale and purchase agreement. It subsequently notified the owners of its three chartered vessels and its Indian customers on 3 March.

QatarEnergy also invoked force majeure on 4 March, prompting further notices to Petronet’s customers the following day. Petronet reported that scheduled cargoes could not be loaded from 3 March onwards.

The underlying supply arrangement covers 7.5 million tonnes of LNG annually on a free-on-board basis, with Petronet arranging shipping and holding corresponding long-term gas sale agreements with customers in India.

(Source: Maritime gateway)