Adani Gas invokes ‘force majeure’ amidst Covid19 lockdown

Adani Gas invokes ‘force majeure’ amidst Covid19 lockdown – Adani Gas has declared ‘force majeure’ as demand from transport, industrial and commercial users have declined and construction work on all of its upcoming city gas distribution project sites have stopped amid the Covid-19-triggered lockdown.

Invoking act of God clause would help the corporate to increase the deadline for starting commercial operations of under-construction city gas distribution projects.

The Gautam Adani-led utility firm that sells piped gas (PNG) to households and compressed gas (CNG) for vehicles hopes to form up for the lost time on new projects once the lockdown is over and is sticking to its cost plan of Rs 1,500 crore for the present fiscal, its CEO Suresh Manglani has said.

“Adani Gas has invoked the act of God provisions of the PNGRB (Petroleum gas and Regulatory Board) regulations,” Manglani said on Friday. “We hope to figure with the regulator because the intensity or duration of Covid-19 isn’t known.”

According to the PNGRB regulations, once a corporation declares the act of God thanks to unforeseeable circumstances as defined by the regulator then any obligation required to be performed by it as per the work program shall be suspended if the corporate fails to perform it.

Adani Gas distributes PNG in four cities and is functioning on nine newly allotted geographical areas (GAs) for city gas distribution.

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