Petronet LNG reports 52.3% growth in net profits, in talks for availing undelivered cargoes
The Hindu - Business/Economy · Published 3 November 2026 · Last updated
Petronet LNG’s 52.3% profit jump underscores operational gains but highlights India’s LNG supply vulnerability as Qatar‑Energy’s force majeure stalls cargo deliveries.
Key points
- Petronet LNG posted a net profit of ₹1,235 crore in Q3 FY2026‑27, a 53.2% rise from ₹806 crore a year earlier.
- Revenue fell 35% to ₹7,200.35 crore despite higher profit, reflecting lower realised freight and cargo values.
- The company processed 231 TBTU of LNG, up from 228 TBTU YoY, yet overall capacity utilisation slipped to 64% from 78%.
- Dahej terminal utilisation dropped to 73%, down from 92% in the same quarter last year.
- Petronet declared a ₹7 per share dividend, signalling confidence in cash flow despite supply disruptions.
- QatarEnergy has invoked force majeure until Dec‑2026, causing Petronet to miss 9‑10 cargoes monthly for eight months – roughly 75‑80 cargoes lost.
- CMD Akshay Kumar Singh says contractual clauses allow recouping missed cargoes one year after May 2028, and talks are ongoing for early deliveries.
- Petronet received only 6 cargoes from QatarEnergy in the quarter, highlighting a severe supply‑side shortfall.
Background
- Petronet LNG, a state‑owned entity, is India’s largest LNG importer, sourcing mainly from Qatar since the early 2000s.
- The India‑Qatar LNG framework was formalised under the 2005 Gas Supply Agreement, with long‑term contracts and take‑or‑pay clauses.
- In 2023‑24, geopolitical tensions in West Asia began affecting cargo schedules, but force majeure was not declared until early 2026.
- Force majeure under the Indian Contract Act, 1872 permits suspension of obligations when an event beyond control prevents performance.
- The FY2026‑27 Q3 results are the first quarter after QatarEnergy’s force majeure declaration, making the profit surge notable.
- India’s LNG import share rose to ~12% of total gas consumption in 2025, increasing strategic importance of uninterrupted cargoes.
- The Ministry of Petroleum & Natural Gas (MoPNG) has repeatedly urged diversification of LNG sources to mitigate single‑source risk.
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Original report: The Hindu - Business/Economy