Shares of gas companies, including GAIL (India), Adani Total Gas, Petronet LNG, Gujarat Gas, Indraprastha Gas, and Mahanagar Gas, among others, fell up to 5 per cent each as geopolitical tensions in West Asia escalated over the weekend. The rising concerns over the prolonged closure of the Strait of Hormuz have raised fears of a liquefied natural gas (LNG) shortage.
The Strait of Hormuz, a critical channel through which over 20 per cent of global oil supply flows, remains largely closed to regular shipping following attacks on several tankers. Additionally, Iraq and Kuwait have begun cutting oil output, adding to earlier reductions from Qatar, as the ongoing war between US-Israel and Iran has disrupted shipments.
The Nifty Oil & Gas index tumbled around 2.7 per cent to a low of 11,413.45, down from the previous session’s close of 11,787. Among individual stocks, GAIL (India) fell 4.5 per cent, Adani Total Gas 3.2 per cent, Petronet LNG 4.7 per cent, Gujarat Gas 4.6 per cent, Indraprastha Gas 2 per cent, and Aegis Logistics 2.2 per cent.
According to Elara Securities, per CY25 data, around 69 per cent of India’s LNG imports (17.5 million tonnes / 63 mmscmd) come from Qatar, UAE, and Oman, with shipments either passing through or near the Strait of Hormuz. After accounting for GAIL’s US LNG swap optimisation, effective system exposure falls to about 66 per cent, though concentration risk remains significant. In a disruption scenario, the earnings impact would likely flow sequentially from terminal utilisation to transmission throughput and finally to downstream industrial margins.
According to brokerage, Petronet LNG’s Dahej terminal faces the highest risk from Strait of Hormuz disruptions, while Kochi, Chhara, Mundra, Dhamra, and Ennore also remain exposed. Gujarat Gas and Gujarat State Petronet are vulnerable to margin and supply pressures, whereas GAIL, Mahanagar Gas, and Indraprastha Gas are relatively insulated due to diversified sourcing and domestic gas supply.
Brent crude, the global oil benchmark, surged around 26 per cent on Monday, March 9, to approximately $119 per barrel, the highest level since July 2022.
However, the US administration under President Donald Trump has assured that the Strait of Hormuz remains open and vessels will be insured during transit.
Meanwhile, Iran has appointed Mojtaba Khamenei as successor to his father, Ali Khamenei, as the country’s supreme leader, signalling Tehran’s continued control amid escalating tensions. Israel has threatened to target Khamenei’s successor, while President Trump warned that the conflict may only end if Iran’s military and leadership are neutralised.
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