QatarEnergy Extends LNG Force Majeure as Hormuz Strait Closure Disrupts Supplies
QatarEnergy has extended force majeure notices affecting liquefied natural gas (LNG) deliveries to several international customers as the continued closure of the Strait of Hormuz disrupts shipments, according to trading sources and Italian energy company Edison.
Edison, one of QatarEnergy’s major European customers, said it would not receive LNG shipments from Qatar until the beginning of December. The extension follows an initial force majeure notice issued in April after disruptions linked to the US-Iran conflict.
Trading sources said QatarEnergy had also informed some Asian customers, including buyers in Pakistan and Bangladesh, that the force majeure arrangements would remain in place until November.
QatarEnergy had not immediately commented on the latest development.
Qatar’s LNG Exports Drop Sharply
Qatar has been among the energy-producing countries most affected by the disruption around the Strait of Hormuz. Reuters estimates that the country’s LNG exports had fallen by around 96% by the end of August.
Data from energy intelligence firm ICIS showed that Qatar had shipped only 18 LNG cargoes through the end of August, compared with 509 cargoes during the same period last year.
The sharp reduction in shipments comes at a critical time for global energy markets, with the winter heating season approaching.
Europe and Asia Face Tighter LNG Competition
European countries are now looking for alternative LNG supplies to replenish gas storage facilities before the colder months arrive.
This could increase competition between European and Asian buyers for the limited LNG available in the international market and may keep natural gas prices under pressure.
Italy has expressed confidence that it can meet the European Union’s target for gas storage levels. However, countries such as Germany are continuing efforts to increase their reserves ahead of winter.
Edison Replaces Some Missing Cargoes
Edison said QatarEnergy would cancel another six LNG cargoes, bringing the total number of undelivered shipments to 35.
The Italian energy company has already arranged replacement supplies for 23 of those cargoes. It has relied mainly on LNG from US suppliers to compensate for shipments that could not be delivered from Qatar.
The ongoing disruption highlights the impact that restrictions around the Strait of Hormuz can have on international energy supplies, particularly for countries that depend heavily on LNG imports.
