Owners of three liquefied natural gas (LNG) carriers engaged by Petronet LNG to transport gas from Qatar have initiated arbitration proceedings against the company, seeking recovery of ₹625.42 crore plus applicable taxes, following prolonged operational disruptions linked to the Iran war.
The vessels — Disha, Raahi and Aseem — operate under long-term charter agreements with India LNG Transport Company (No.1) Ltd, India LNG Transport Company (No.2) Ltd and India LNG Transport Company (No.3) Ltd, respectively.
Operations of the three vessels have remained largely suspended since March 2, with only one vessel being deployed for approximately seven days in June. The disruption has resulted in mounting claims by the vessel-owning companies for charter payments and associated costs.
According to Petronet LNG’s earnings disclosure, the claims, including associated costs, stood at ₹89.30 crore as of March 31, 2026, before increasing sharply to ₹625.42 crore by September 30, 2026.
Petronet LNG is contesting the claims and has stated that the outcome of the arbitration proceedings remains uncertain. “The outcome of the arbitration proceedings and the resulting financial impact, if any, cannot presently be determined,” the company said in its disclosure. It added that no provision has been made for the claims.
Meanwhile, Petronet LNG reported a 53 per cent year-on-year increase in net profit to ₹1,235 crore for the July-September quarter, despite a 35 per cent decline in revenue from operations to ₹7,200 crore.
The company processed 231 trillion British thermal units (TBTU) of LNG at its import terminals during the quarter.