OIL & GAS

Petronet says Qatargas, Exxon objected to force majeure on LNG imports

India’s top gas importer Petronet LNG said on Tuesday suppliers Qatargas and Exxon Mobil Corp objected to the force majeure it invoked in March after local demand slumped because of lockdowns to stem the spread of COVID-19.

Petronet has a deal to buy 7.5 million tonnes per annum (mtpa) of LNG from Qatar and 1.44 mtpa from Exxon’s Gorgon project in Australia.

Petronet invoked the force majeure on eight LNG cargoes of Qatar and one from Exxon for loading from March to May, its head of finance V.K. Mishra told an analyst conference.

Force majeure is a clause in commercial contracts allowing companies to not fulfill contracts because of event outside their control.

“They have objected to this force majeure, we are trying to convince them and hopefully we will work out a solution because as per contract this is admissible,” Mishra said.

“They have objected to it but they have not given any reason why this is not a force majeure.”

Source
ET Energy World
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