QatarEnergy has extended force majeure notices, impacting liquefied natural gas (LNG) deliveries to Italian utility Edison and several Asian clients due to the ongoing closure of the Strait of Hormuz. Edison announced on Monday that it will not receive LNG shipments until early December, following a force majeure notification first issued in April amid disruptions from the US-Iran conflict. Asian clients, including those in Bangladesh and Pakistan, were also informed of the extended force majeure until November.
The conflict has severely affected Qatar, with LNG exports plummeting by 96% as of late August. While neighboring Gulf exporters have managed to ship oil covertly, Qatar’s LNG cargoes dropped significantly, from 509 to just 18 by the end of August, according to ICIS data.
As the winter heating season approaches, European buyers will face increased competition for limited gas supplies, which could keep prices elevated. Despite confidence in meeting the EU’s gas storage targets, countries like Germany are urgently filling their reserves. Edison, which has a long-term contract with QatarEnergy for 6.4 billion cubic meters of gas annually, has replaced 23 cargoes primarily with US suppliers due to the ongoing delivery issues.
