Qatar extends LNG force majeure as Hormuz disruption threatens winter supply

Qatar has extended a force majeure notice on LNG shipments to Asia and Europe for an additional month due to ongoing disruptions at the Strait of Hormuz. QatarEnergy informed several Asian and European buyers, including Pakistan, Bangladesh, and Italy’s Edison, that LNG shipment cancellations will continue until November and possibly early December.

The disruptions, which have been ongoing since the Iran war began, have caused global LNG supply to remain below prewar levels, with Iran refusing to soften its conditions for reopening the waterway. This situation threatens to keep flows constrained through the Hormuz, which handles about a fifth of global LNG supply, potentially leading to higher utility bills during the Northern Hemisphere winter.

Qatar's Ras Laffan LNG export facility, which was attacked and damaged in March, is currently operating at reduced capacity and is prepared for a rapid increase in output if Hormuz reopens.

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