QatarEnergy Extends LNG Force Majeure Due to Strait of Hormuz Closure
QatarEnergy has extended force majeure notices for its liquefied natural gas (LNG) deliveries to Italian utility Edison and some Asian clients due to the ongoing closure of the Strait of Hormuz. The latest extension was announced on Monday, affecting shipments that were initially scheduled for November. Clients in Asia, including Bangladesh and Pakistan, will not receive LNG cargoes until November, according to trading sources.
Edison, one of QatarEnergy's biggest customers in Europe, said it would not receive LNG cargoes until the beginning of December. The Italian utility holds a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of natural gas per year, around 10% of Italy's total consumption.
The Strait of Hormuz closure has severely impacted Qatar's LNG exports, which were down 96% in August compared to the same period last year. While neighboring Gulf exporters have managed to ship oil secretly out of the Strait, Qatar's LNG deliveries remain limited. The winter heating season is about to start, and buyers in Europe will face increased competition for the limited available global supply.