What is Force Majeure clause?

The word “Force Majeure”, virtually meaning ‘superior force’ successful French, is simply a contractual clause that safeguards a enactment from fulfilling its nonrecreational obligations successful the lawsuit of unforeseeable circumstances. As the contiguous warfare betwixt Iran and U.S.-Israel escalates, several Gulf countries, including Qatar, Bahrain, and Kuwait, person invoked ‘Force Majeure’ connected state exports. The important improvement is simply a effect of aggravated shipping disruptions, caused owed to predominant subject attacks connected lipid refineries and an uncertain play of blockade astatine Strait of Hormuz.

What is ‘Force Majeure’?

The word originated successful French civilian instrumentality (Napoleonic Code) of 1804. It superseded the older Roman ineligible conception of vis major, referring to irresistible unit oregon an ‘Act of God’. The Romanic rule ad impossibilia nemo tenetur (no 1 is expected to perform) provided the aboriginal ineligible ground for excusing parties from obligations owed to circumstances beyond their control.

However, successful wide concern landscape, the contractual clause pertains to these conditions to beryllium qualified arsenic ‘Force Majeure’: 1.) earthy disasters 2.) accidents 3.) conflicts specified arsenic strikes, war, coercion 4.) commercialized embargoes 5.) judgements, administrative seizures etc.

How is Force Majeure antithetic from Act of God?

While some Force Majeure and Act of God are contractual arrangements, the second is circumstantial to earthy events specified arsenic epidemic oregon earthy calamities, and should beryllium uncommon and cannot beryllium easy replicated.

Did India invoke a ‘Force Majeure’?

On March 13, India invoked a ‘Force Majeure’ to redirect state supplies from non-priority sectors to home users aft the state faced a large situation successful LPG organisation to consumers. The determination followed aft the state witnessed a monolithic irregularity successful LPG state booking and depletion crossed households and concern environments. Restaurants, tiny eateries, and hotels were among the worst hits.

Petronet LNG — from wherever India majorly imports state — invoked a ‘Force Majeure’ connected March 5, 2026. The steadfast cited it to its supplier Qatar Energy that its vessels are incapable to scope Ras Laffan Load Airport owed to the ongoing subject crisis. The ‘Force Majeure’ was issued for its LNG tankers Disha, Raahi, and Aseem. Additionally, Petronet besides issued ‘Force Majeure’ to its home customers GAIL, Indian Oil, and Bharat Petroleum.

Why are Gulf countries invoking a ‘Force Majeure’?

The latest bid of invocations person straight stemmed from U.S and Israel’s warfare connected Iran, opening from February 28. With such, the companies successful Qatar, Kuwait, and Bahrain person claimed the ongoing struggle successful Strait of Hormuz arsenic the main crushed down the determination of ‘Force Majeure’.

The Strait of Hormuz assumes captious relation successful the struggle since it serves arsenic transition for astir 20% of planetary supply.

Petronet LNG — from wherever India majorly imports state — invoked a ‘Force Majeure’ connected March 5, 2026. The steadfast cited it to its supplier Qatar Energy that its vessels are incapable to scope Ras Laffan Load Airport owed to the ongoing subject crisis. The ‘Force Majeure’ was issued for its LNG tankers Disha, Raahi, and Aseem. Additionally, Petronet besides issued ‘Force Majeure’ to its home customers GAIL, Indian Oil, and Bharat Petroleum.

Also Read | How Iran warfare could make ‘fertilizer shock’ – often ignored planetary hazard to nutrient prices, farming

Which countries person invoked ‘Force Majeure’ yet?

1. China: Sinopec, the world’s biggest refiner by capacity, is seeking to slash by much than 10% from an archetypal program successful effect to a crude proviso gap. China’s Wanhua chemic has announced ‘Force Majeure’ to its West Asian customers. Moreover, CNOOC and Shell petrochemicals are readying to adjacent Huizhou works owed to ongoing disruptions. Alongside, Zhejiang Petrochemicals has unopen different 200,000 tube per-day portion owing to the ongoing conflict.
2. Malaysia: Pengerang Refining (Prefchem), a associated portion betwixt Petronas and Saudi ⁠Aramco, had unopen its 300,000-barrel-per-day (bpd) crude portion owed to a looing scarcity of crude feedstock.
3. Singapore: Singapore Refining Co (SRC) has trimmed refinery runs astatine its 290,000-bpd ​Jurong Island tract successful Singapore to astir 60% and is apt to support reduced runs until the extremity of the month. Also connected Jurong Island, a 592,000-bpd tract owned by ExxonMobil has chopped slashed runs to astir 50% oregon little from astir 80% oregon more, sources said.
4. Taiwan: Taiwan’s Formosa Petrochemical Corp has declared a ‘Force Majeure’ connected immoderate of its petrochemical supplies.
5. Japan: Japan’s Mitsui Chemicals started to chopped ethylene accumulation successful Osaka and Chiba owed ​to a driblet successful naphtha supplies.
6. Bahrain: Bapco Energies declared unit majeure connected its radical operations, pursuing a caller onslaught connected its refinery complex, the institution said.
7. Thailand: Thai petrochemicals steadfast Rayong Olefins, a portion of Siam Cement Group, declared unit majeure owed to the Middle ​East conflict, according to a transcript of a missive seen by Reuters.

(With Reuters inputs)