Force Majeure in Energy Contracts
Force majeure (Latin: "superior force") is a standard clause in commercial contracts that excuses a party from fulfilling its contractual obligations when extraordinary events beyond its control — wars, natural disasters, government actions — make performance impossible. In LNG contracts, force majeure allows buyers (like Petronet LNG) or sellers to suspend deliveries without penalty during such disruptions.
- Petronet LNG invoked force majeure against QatarEnergy after Iranian strikes rendered safe navigation to Ras Laffan impossible
- GAIL's LNG allocation was subsequently reduced to zero from March 4, 2026
- Force majeure differs from contract termination — deliveries resume once the triggering event ends
- The cascade: QatarEnergy force majeure → Petronet → GAIL → downstream industrial consumers
● Tracked since March 05, 2026 · last seen May 05, 2026 · updates as the daily brief publishes
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