West Asia Conflict Disrupts LNG Supply Chain, GNFC Faces 60% RLNG Cut Impacting Neem Urea Production

A force majeure event triggered by escalating geopolitical tensions in West Asia has disrupted the liquefied natural gas (LNG) supply chain, directly affecting Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC). The company’s gas supplier, GAIL (India) Limited, received a force majeure notice from Petronet LNG Limited following transit disruptions linked to regional conflict. As a result, GNFC’s allocation of re-gasified liquefied natural gas (RLNG), a critical feedstock for fertilizer manufacturing, has been reduced by around 60 percent starting March 6, 2026. The immediate operational impact is being felt in Neem Urea production, while other product lines remain unaffected for the time being. The company has not yet assessed the full operational implications, as the supply outlook continues to evolve. The situation underlines the vulnerability of industrial supply chains that rely heavily on a single energy corridor exposed to global geopolitical risks. The disruption is linked to intensifying hostilities between Iran and Israel in West Asia, which have complicated maritime movement through the Strait of Hormuz — one of the world’s most crucial energy transit routes. This corridor plays a central role in global LNG logistics, and the uncertainty has interrupted shipments from Qatar, India’s largest LNG supplier. Qatar accounts for roughly 40–50 percent of India’s annual LNG imports, making any disruption along this route a significant challenge for energy supply chains. The tightening supply situation is also reflected in regional LNG spot markets, where prices have surged sharply from