Shares of Petronet LNG declined as much as 7 percent to close at ₹271.9 on Thursday, ending near its recent 52-week low of ₹263.5. According to CNBC TV18, the stock had opened 2.74 percent lower and reversed gains seen over the previous two sessions. GAIL (India) shares also slipped after two days of gains, touching an intraday low of ₹146.2, down 3.15 percent. The decline came after Qatar reported damage following an Iranian missile strike at Ras Laffan, the world's largest liquefied natural gas (LNG) facility. As per The Economic Times, gas stocks such as GAIL and Petronet LNG may remain in focus as the Iran-Israel conflict raises fears of prolonged disruption in the Strait of Hormuz, a key route for global energy shipments.
Brokerage firm Nomura has cut its price target on Petronet LNG shares to ₹340 from ₹370 in its latest note on Friday, March 20, while maintaining its "buy" rating. According to CNBC TV18, the revised price target implies an upside potential of 25 percent from current levels. Nomura has observed that India-specific trains were not damaged during the attacks on QatarEnergy's Ras Laffan Industrial Complex, and believes that the crisis in West Asia may hurt near-term volumes for Petronet LNG. The brokerage has cut its financial year 2027 EBITDA estimates for Petronet LNG by 23 percent, as it believes the Ras Laffan unit may take months to come back online.
Qatari authorities reported late Wednesday that the Ras Laffan Industrial City, which houses the LNG facility accounting for about a fifth of global supply before production was halted earlier this month, was hit by an Iranian missile after four others were intercepted. As reported by Moneycontrol, hours later, Abu Dhabi shut its Habshan gas facilities following debris from an intercepted strike. A fresh attack early Thursday triggered a fire at Ras Laffan, which authorities said was being contained. QatarEnergy confirmed that several LNG facilities were hit, causing fires and extensive damage, with no casualties reported. According to The Economic Times, the Strait of Hormuz remains effectively closed, leading to expectations of prolonged disruptions and potential price hikes to $150 per barrel.
The decline in shares comes amid concerns over potential disruptions in LNG supply, as Ras Laffan serves as a key global export hub. According to Moneycontrol, any damage to its infrastructure raises uncertainty over availability and pricing of gas, impacting companies dependent on LNG imports. However, Nomura believes that Indian supplies might resume once the Force Majeure that is currently in place is lifted, since India-specific trains were not damaged. According to QatarEnergy's CEO, there has been long-term damage to two out of the 14 LNG trains, which could lead to 12.8 million tonnes, or 17 percent of the overall capacity to be offline for three to five years. The developments mark a further escalation in regional tensions, with LNG prices having more than doubled and crude oil prices soaring as the conflict between the US, Israel, and Iran has entered a war of attrition.
US President Donald Trump said the US would retaliate if Qatar's LNG facilities were attacked again, as reported by Moneycontrol. Tehran subsequently warned that energy facilities in Qatar, Saudi Arabia and the United Arab Emirates could be considered 'legitimate targets'. The tensions follow a series of attacks on oil and gas infrastructure in recent days, with the latest developments representing a significant escalation in the regional conflict. According to CNBC TV18, Petronet LNG is currently trading at 11.7 times its estimated financial year 2027 price-to-earnings and 1.8 times financial year 2027 forward price-to-book. At the current price, the stock is near its recent 52-week low, with 33 analysts covering the stock, of which 20 have a "buy" rating, seven say "hold", while six have a "sell" recommendation.
