QatarEnergy Extends Force Majeure Notices on LNG Supply to Edison and Asian Clients
QatarEnergy has extended its force majeure notices to Italian utility Edison and several Asian clients, including those in Bangladesh and Pakistan. The company will not be able to deliver liquefied natural gas (LNG) cargoes until early December due to the closure of the Strait of Hormuz caused by the US-Iran war.
The latest extension is a result of disruptions that started in April, with QatarEnergy initially issuing a force majeure notification. Edison, one of the company's biggest customers in Europe, will not receive LNG cargoes until December 1st, according to the Italian group.
Clients in Asia were informed that force majeure notices had been extended until November, two trading sources said. Qatar is among the Iran conflict's biggest economic casualties, with its liquefied natural gas exports slashed by 96%, Reuters calculated at the end of August.
With the winter heating season starting within days, buyers in Europe will have to look elsewhere to refill gas storage inventories ahead of the coldest months of the year. This will fuel competition with Asian clients for the limited available global supply, keeping gas prices elevated.