Qatar extends LNG force majeure as Hormuz disruption threatens winter supply
(Bloomberg) -- Qatar has extended force majeure on liquefied natural gas shipments to Asia and Europe by another month as disruptions continue to hamper energy flows through the critical Strait of Hormuz.
Qatar has again postponed liquefied natural gas (LNG) shipments to Asia and Europe, extending its force majeure designation for another month. The state-owned QatarEnergy informed Pakistan, Bangladesh, and at least one Indian buyer that the cancellations would continue through November, according to sources familiar with the situation.
Additionally, Italy's Edison reported that its deliveries would remain suspended until early December. The company has been notifying LNG customers of the force majeure and canceling deliveries roughly once a month since the start of the Iran war. Although Qatar has increased shipments through the Strait of Hormuz this month, flows remain significantly below prewar levels.
Iran has stated it will not ease its conditions for reopening the waterway, while President Donald Trump has offered mixed signals about his willingness to negotiate a deal. This disruption threatens to keep flows constrained through the Hormuz passage, which handled about a fifth of global LNG supply last year. The ongoing conflict and lack of a peace agreement between the US and Iran have prevented a resolution to the issue.
The squeeze on LNG supplies has driven prices to their highest levels since late 2022, raising concerns about higher utility bills during the Northern Hemisphere winter. Qatar's Ras Laffan LNG export facility is operating at reduced capacity following an attack and damage in March, and the plant is prepared for a rapid increase in output if Hormuz reopens.
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