Petronet LNG shares hit 10% lower circuit as Qatar halts production

Petronet LNG share price today: Shares of state-run energy major Petronet LNG hit the 10 per cent lower circuit today after the company issued a force majeure notice to QatarEnergy regarding its LNG tankers. The stock opened 3.5 per cent lower at ₹298 on the National Stock Exchange (NSE) and later fell to the day’s lower price band of ₹277.80.

Around 7.4 million shares changed hands before trading in the counter was halted at the lower circuit, according to NSE data.

The sharp sell-off was triggered after Qatar declared force majeure on deliveries following a halt in production due to an Iranian drone strike. The disruption has reportedly reduced gas supplies to Indian industry by up to 40 per cent.

Petronet LNG stock: Buy?

Gaurav Sharma, Head of Research at Globe Capital, said that Petronet LNG has come under selling pressure due to supply disruptions. However, he sees strong support for the stock around ₹270.

According to him, the recent decline should be viewed as a buying opportunity for investors with a long-term horizon of one to two years.

“₹270 remains a strong support level, and the current selling presents a good long-term opportunity. I am not bullish in the short to medium term, as the stock may continue to face pressure due to rising tensions in the Middle East. However, for long-term investors, this decline should be viewed as a buying opportunity,” he said.  CHECK Stock Market LIVE Updates

Qatar largest supplier of imported natural gas

Qatar is India’s largest supplier of imported natural gas. Qatar supplies about 40 per cent of the nearly 27 million tonnes of (LNG) that India imports annually.

Separately, Petronet LNG has informed gas marketers of Qatar halting its LNG production. The attacks have also effectively brought oil and LNG shipments through the Strait of Hormuz to a near halt.

Petronet has long term contract to buy 8.5 million tonnes per annum of LNG from Qatar.

The Strait is controlled by Iran. It is a vital maritime chokepoint through which roughly 50 per cent of India’s crude oil imports and around 54 per cent of its LNG supplies transit.

Meanwhile, gas marketers have cut supplies to industries while maintaining flow rates for CNG retailing. The cuts range from 10 per cent to 40 per cent.

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