Qatar Extends Force Majeure Status for LNG Supplies to Pakistan

Qatar's energy giant QatarEnergy has once again extended the force majeure status of its long-term liquefied natural gas (LNG) supply contract with Pakistan, this time until October. The move comes as a result of ongoing tensions in the Middle East and high shipping risks in the Strait of Hormuz, which has forced several LNG cargo ships to delay or change their routes.

The Ras Laffan LNG production facility in Qatar was attacked in March, causing damage to about 17% of its liquefied natural gas production capacity. The repair period is estimated to be between 3 to 5 years, leaving a permanent gap in production capacity.

Pakistan highly relies on Qatar for LNG imports under long-term contracts with lower prices compared to the spot market. However, since the outbreak of the conflict, QatarEnergy has repeatedly updated force majeure notices and adjusted shipping plans for LNG customers in multiple Asian countries.