Qatar Extends LNG Deliveries Force Majeure Amid Hormuz Disruptions

Qatar's state-owned energy company QatarEnergy has extended its force majeure on LNG deliveries to Asia and Europe until November, citing ongoing disruptions due to the U.S.-Iran stalemate over the Strait of Hormuz. The move affects customers in Bangladesh and Pakistan as well as Italy's Edison.

The force majeure extension is a result of the prolonged blockage of LNG cargo traffic through the Strait of Hormuz, which has crippled Qatar's exports since last year. According to Reuters calculations, Qatar has lost $24 billion in sales due to the decline in exports, with shipments tumbling by as much as 96%.

Despite some recent LNG cargoes from Qatar and the UAE transiting the Strait or engaging in ship-to-ship transfers outside the Strait, volumes remain a fraction of pre-war levels. Unlike oil, it is difficult to shuttle-ship LNG through Hormuz and reload via ship-to-ship transfer.