QatarEnergy Extends Force Majeure as Hormuz Closure Disrupts LNG Exports

The Strait of Hormuz closure has forced QatarEnergy to shut down liquefaction trains and declare force majeure on LNG deliveries to several Asian buyers. The move signals expectations that export disruptions could persist as tensions in the region remain high.

Qatar accounts for about a fifth of global LNG trade, making it one of the world's biggest LNG exporters. A prolonged outage would tighten supplies and push up prices to key Asian buyers heading into the northern hemisphere winter.

The company has extended force majeure on LNG supplies to buyers in South Korea, India, and Bangladesh until mid-September. Petrobangla's acting chairman, Abdul Mannan, expressed concern over Qatari supplies, saying, 'The uncertainty over Qatari supplies remains a concern for us.'

To mitigate the impact of the disruption, QatarEnergy entities QatarEnergy LNG Marketing (QELM) and QatarEnergy Trading (QET) continue to offer some of their LNG tankers for lease through October. At least nine QELM/QET-controlled LNG carriers have been sub-chartered to third parties.