Qatar Energy extends force majeure on LNG shipments - Sarmad

Qatar has extended the force majeure declaration on its liquefied natural gas (LNG) shipments to Asia and Europe for an additional month, amid ongoing disruptions that are hindering energy flows through the vital Strait of Hormuz.

QatarEnergy, the state-owned company, informed Pakistan and Bangladesh this week that the cancellation of LNG shipments would continue until November, according to people familiar with the matter. It also notified at least one Indian buyer of the continued measure, according to two other individuals, while Italy’s Edison company said its supplies would remain suspended until early December.

QatarEnergy did not immediately respond to a request for comment. Since the outbreak of the war with Iran, the company has continued to update its clients on the latest developments regarding force majeure, canceling scheduled shipments on a near-monthly basis.

Although Qatar succeeded in increasing its shipments through the Strait of Hormuz this month, flows remain well below pre-war levels. Iran recently reaffirmed that it would not relax its conditions for reopening the strait, while US President Donald Trump sent mixed signals regarding his readiness to reach an agreement.

The continued disruptions threaten to keep LNG flows through the Strait of Hormuz limited, after the waterway accounted for about one-fifth of global supplies last year. With a peace agreement between the United States and Iran still distant, these pressures have pushed LNG prices in Europe and Asia to levels nearing their highest since late 2022, signaling higher energy bills during the winter in the Northern Hemisphere.

Qatar is operating its Ras Laffan LNG export facility at reduced capacity following an attack that caused damage in March. Qatar is keeping the facility ready to ramp up production quickly if the Strait of Hormuz is reopened.