Escalating tensions in West Asia have started to ripple through global energy markets, forcing several Indian energy companies to invoke a contractual clause known as force majeure. The provision allows companies to temporarily suspend or delay contractual obligations when extraordinary events beyond their control disrupt supply chains.
The trigger this time has been disruptions to liquefied natural gas (LNG) supplies. Qatar, one of the world’s largest LNG exporters, reportedly halted operations at its Ras Laffan facility after an Iranian drone strike. The facility accounts for nearly one-fifth of global LNG supply. As supply concerns intensified, natural gas prices surged more than 40 per cent, data from Norway-based consultancy Rystad Energy showed.
The article was authored by Venkatesh Raman Prasad, Partner, and was published in News18.
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Venkatesh (Venky) is a seasoned corporate lawyer with 25+ years' experience in M&A, private equity, JVs, cross-border deals, and India entry strategies.