QatarEnergy Extends LNG Force Majeure Until November Amid Strait of Hormuz Tensions

QatarEnergy has extended its 'force majeure' on LNG deliveries to Bangladesh and other buyers until November 2026, citing security concerns in the Strait of Hormuz amid the ongoing US-Iran conflict. The suspension affects buyers across Europe and Asia.

Force majeure allows a party to suspend its contractual obligations due to unforeseen events such as war or natural disasters. Qatar, Bangladesh's largest LNG supplier under long-term contracts, delivers at least 40 cargoes a year.

Petrobangla now expects to receive roughly half the number of cargoes it was expecting under two long-term agreements that were expected to supply 56 cargoes in the current 2026-27 fiscal year. The disruption has forced Asian and European buyers to seek alternative LNG supplies, with Bangladesh turning to direct purchase method (DPM) imports.

Suppliers have failed to deliver at least six cargoes, widening the deficit and disrupting power generation, industrial output, residential supply, and the CNG sector in Bangladesh. Petrobangla has stepped up spot-market LNG purchases as long-term cargoes become increasingly uncertain, with officials saying the government is prioritizing supply security over cost.

QatarEnergy first declared force majeure on March 4, shortly after the Middle East conflict disrupted shipping through Hormuz. The move effectively removed most Qatari LNG cargoes from the global market, resulting in a collapse in exports estimated to have cost Qatar roughly $24 billion in gas revenue.