Qatar Extends LNG Supply 'Force Majeure' by Another Month... Until November–December

[Financial News] Qatar, which has been delaying liquefied natural gas (LNG) exports by consistently extending its "force majeure" declaration since the outbreak of the war with Iran last March, has extended the declaration for another month. They did not mention the reason for the extension.
According to U.S. energy media outlet Energy Now and others on the 28th (local time), QatarEnergy, the Qatari state-owned energy company, recently notified Pakistan and Bangladesh that the cancellation of LNG shipments would continue until November.
An Indian importer was also notified that the measure would remain in place, and Italian energy company Edison announced that the suspension of supply to it would continue until early December.
Earlier, QatarEnergy declared a force majeure in March as the outbreak of the war with Iran made it difficult to export LNG through the Strait of Hormuz. A force majeure declaration is issued when a company is unable to fulfill its contractual obligations due to exceptional circumstances beyond its control, such as war or natural disasters. Officials note that once such a declaration is issued, the eligibility for exemption from liability for the company's non-performance of obligations will be determined based on the specific terms of each contract.
QatarEnergy has been canceling scheduled supply volumes since March, updating customers on force majeure situations approximately once a month. The company did not provide an immediate response to requests for comment regarding this measure.
Prior to the war, the Strait of Hormuz was a region through which approximately 20% of the world's LNG supply passed. Although Qatari shipments have increased slightly this month, LNG transport volumes through the Strait of Hormuz remain at pre-war levels. Due to supply shortages, LNG prices in Europe and Asia have risen to their highest levels since late 2022. As of last year, Qatar ranked third in the world for LNG export capacity, following the United States of America and Australia. Currently, Qatar is operating its Ras Laffan Industrial City LNG export terminal on a reduced scale, as the terminal was damaged during the war last March.


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