Key facts
- QatarEnergy extended its force majeure on LNG deliveries to Asia and Europe through the end of November.
- The force majeure was previously set to expire at the end of October.
- Customers notified include buyers in Bangladesh, Pakistan, India, and Italy's Edison.
- Edison's force majeure extension is until early December.
- The Strait of Hormuz remains largely blocked due to the U.S.-Iran stalemate.
- Qatar's LNG exports have fallen by as much as 96%, resulting in $24 billion in lost sales.
State-owned QatarEnergy has extended its force majeure on liquefied natural gas (LNG) deliveries to Asia and Europe by another month, through the end of November. This decision comes as LNG cargo traffic through the Strait of Hormuz remains largely blocked amid a protracted U.S.-Iran stalemate. The company has notified customers in Bangladesh, Pakistan, India, and Italy's Edison of the extended disruption. For Edison, the force majeure has been prolonged until early December.
Six months after the conflict began, Qatar, previously the world's second-largest LNG exporter, has seen its exports plummet by as much as 96%. Reuters calculations, citing data from ICIS, indicated that Qatar has lost $24 billion in sales, with only 18 LNG cargoes exported in the past six months compared to 509 in the same period last year. While some LNG cargoes from Qatar and the UAE have recently transited the Strait or undergone ship-to-ship transfers offshore Oman, these volumes are a fraction of pre-conflict levels. Shuttling LNG through Hormuz and conducting ship-to-ship transfers is significantly more complex than doing so for oil.