Petronet LNG, GAIL Advance As Qatar Readies LNG Output Recovery Following Hormuz Reopening

Petronet LNG Ltd and GAIL (India) Ltd were still in the spotlight on Tuesday amid a news report by Bloomberg stating that Qatar would be resuming LNG production gradually since the Strait of Hormuz is expected to reopen soon.

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At around 12:57 p.m. IST, Petronet LNG shares were trading at ₹289.90, up ₹4, or 1.40%.

Qatar Plans Phased Recovery In LNG Output

According to Bloomberg, QatarEnergy has informed customers that LNG production could recover to nearly 50% of capacity within one month of safe navigation through the Strait of Hormuz being restored. The company expects output to reach around 80% of capacity within two months.

The report stated that the remaining capacity, equivalent to two LNG production trains, may require a longer recovery period after sustaining damage during missile attacks earlier this year.

Qatar halted operations at the Ras Laffan industrial complex during the initial phase of the conflict after an Iranian strike disrupted activity. The facility is regarded as the world’s largest LNG export hub and accounted for close to one-fifth of global LNG supply in the previous year, as per Bloomberg.

Along with Petronet LNG shares, GAIL (India) shares also traded in positive territory at ₹175.69, gaining ₹0.28, or 0.16%, as of 12:59 p.m.

Preparations Underway At Ras Laffan Facility

Bloomberg reported that maintenance work and equipment testing have been ongoing at the Ras Laffan complex since April. Some LNG trains have continued operating at limited levels to meet regional supply commitments while preserving the flexibility to increase production when shipping conditions improve.

The potential resumption of exports from Qatar is being closely monitored by energy markets, given the country’s role as one of the world’s largest LNG suppliers.

Impact On Global Gas Markets

The reintroduction of LNG cargo shipments from Qatar into the market might aid in increasing the availability of LNG in the international gas market. Bloomberg noted that benchmark prices for LNG in Europe and Asia have remained high even amid progress in the negotiations between the U.S. and Iran. The market is awaiting greater clarity on the timing of shipping normalisation and the pace of export recovery from the Gulf region.

Attention also remains on developments surrounding the Strait of Hormuz. Bloomberg reported that U.S. President Donald Trump has stated that the waterway could reopen by Friday, when U.S. and Iranian officials are expected to sign an interim agreement in Switzerland.

While discussions have progressed, shipping operators continue to monitor security conditions and mine-clearance efforts before normal traffic resumes through one of the world’s busiest energy corridors.