Qatar Extends LNG Force Majeure Amid Ongoing Strait of Hormuz Tensions

QatarEnergy, the state-run energy company of Qatar, has extended its force majeure declaration on liquefied natural gas (LNG) supplies to Asia and Europe by another month amid ongoing disruptions in the Gulf region. This decision comes as tensions between the US and Iran persist over the Strait of Hormuz, a vital shipping route.

The company notified customers that LNG shipment cancellations will continue through November, affecting Pakistan, Bangladesh, India, and Italy's Edison energy company among others. This is the fourth month QatarEnergy has updated its force majeure situation, canceling scheduled deliveries since the outbreak of the war with Iran.

LNG prices in Europe and Asia have surged to their highest levels since late 2022 due to the supply crunch, raising concerns about further exacerbating energy cost burdens heading into the winter season. The Strait of Hormuz handled around 20% of global LNG supplies last year, but total transport volumes remain significantly below pre-war levels.