Urea plants running at reduced capacity

India’s urea industry was running at approximately half capacity after force majeure declarations disrupted LNG flows through the Strait of Hormuz amid escalating Middle East tensions, according to local press reports. Petronet LNG Ltd, which operates India’s largest liquefied natural gas receiving terminal, declared force majeure after upstream suppliers cited their inability to deliver contracted volumes amid disruptions to cargoes transiting the Strait. The move triggered supply curtailments by state-owned gas distributors GAIL (India) Ltd, Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL), which supply gas under RasGas contracts to fertiliser units across the country.