Discover Top Posts Tagged with #hormuzcrisis

LNG Contracts: Hormuz Crisis May Permanently Change Long-Term LNG Agreements

The LNG Contracts market could witness one of its biggest structural shifts after the Hormuz crisis exposed weaknesses in long-term supply agreements. A June 2026 study by the Oxford Institute for Energy Studies suggests future LNG Contracts will increasingly focus on supply security, cargo allocation and disruption management rather than only pricing flexibility. This Indian Petroplus analysis shows that while LNG prices may normalise over time, contractual frameworks are likely to evolve permanently.

For years, LNG agreements were negotiated during a period of abundant supply and growing market liquidity. The disruption affecting nearly 20% of global LNG supply shifted industry attention toward scarcity, forcing buyers and sellers to reassess force majeure provisions, shipping risks and cargo allocation mechanisms. The report notes that existing contracts often fail to clearly define obligations when deliveries are delayed, partially reduced or affected by wider portfolio constraints.

The study also identifies allocation of available LNG as one of the weakest areas in current contracts. Future agreements may include clearer rules for sharing limited supplies, restoring undelivered cargoes and managing take-or-pay obligations after disruptions end. Shipping clauses could also expand to cover war-risk insurance, alternate routes and operational feasibility.

According to Indian Petroplus analysis, the Hormuz crisis may leave its biggest impact on LNG Contracts rather than LNG prices. Future agreements are expected to prioritise resilience, recovery planning and supply continuity as geopolitical risks become a permanent feature of the global LNG market.

#LNGContracts #LNG #NaturalGas #HormuzCrisis #EnergySecurity #GasMarket #ForceMajeure #GlobalLNG #IndianPetroplus #GasTrade

The same crisis, three different bills: OMCs, CGDs and industrial users are absorbing Hormuz shock differently

The same crisis, three different bills is becoming the defining pattern across India’s downstream energy chain after the Hormuz disruption. The latest quarterly results from IOCL, IGL and Somany Ceramics show that refiners, gas distributors and industrial consumers are each absorbing the same energy shock through entirely different financial mechanisms. Indian Petroplus analysis indicates that the current pricing architecture is creating asymmetric pressure across the fuel ecosystem rather than distributing costs evenly.

IOCL posted a sharp jump in quarterly profitability as refining margins expanded due to favourable crude spreads and discounted imports. However, the refining windfall is simultaneously being used to absorb heavy marketing under-recoveries on LPG, diesel and petrol. The stronger refining segment is effectively subsidising retail fuel losses.

The situation looks very different for city gas distributors. IGL reported record gas sales volumes but declining profitability because regulated tariffs prevented full pass-through of rising LNG-linked input costs. Reduced APM gas allocation and higher spot LNG dependence have compressed margins despite stable demand growth.

Meanwhile industrial consumers like Somany Ceramics have managed to preserve profitability by transferring higher gas costs downstream through product price increases. The ceramics sector successfully protected EBITDA margins even after significant energy-cost inflation.The same crisis, three different bills therefore reflects a structural policy outcome where each tier absorbs the Hormuz shock differently depending on pricing flexibility and regulatory constraints. Indian Petroplus analysis suggests that future stress will intensify if crude prices rise further or Russian crude waivers tighten.

#IOCL #IGL #HormuzCrisis #OMC #CityGas #LNGPrices

Hormuz Crisis Escalates: China Warns US Against Interference Amid Rising Global Tensions

Tensions in the Middle East are intensifying as China issues a strong warning to the United States over its naval blockade in the Strait of Hormuz. Chinese Defense Minister Dong Jun emphasized that any disruption to China’s critical energy and trade routes—especially with Iran—will not be tolerated.

With nearly 40% of China’s crude oil and 30% of LNG supplies passing through the Strait of Hormuz, the stakes are high. Meanwhile, the blockade ordered under Donald Trump has heightened fears of a larger geopolitical and economic clash—possibly even a petrodollar vs yuan battle.

As both powers stand firm, the world watches closely—because any escalation could shake global oil prices, supply chains, and international diplomacy.