QatarEnergy's LNG Exports Grounded Amid Iran War Chaos

QatarEnergy's liquefied natural gas (LNG) exports have been severely impacted by the ongoing Iran war, forcing the company to declare force majeure on deliveries to several Asian buyers. The Strait of Hormuz remains closed, and renewed Iranian attacks this month on tankers transiting the strait have clouded prospects for a return to pre-war flows.

QatarEnergy has extended force majeure on LNG supplies to buyers in South Korea, India, and Bangladesh, with notices previously due to expire in August and early September now extended until mid-September. The company's acting chairman, Abdul Mannan of Petrobangla, expressed concern over the uncertainty surrounding Qatari supplies, stating that they have had to turn to the costlier spot market and are exploring other options.

QatarEnergy entities QatarEnergy LNG Marketing (QELM) and QatarEnergy Trading (QET) continue to offer some of their LNG tankers for lease through mid-October. Although only several vessels from the company's nearly 70-strong fleet have been chartered out, this move could signal expectations of prolonged disruption.

According to Ikram Elloumi, director of research at Wood Mackenzie, at least nine QELM/QET-controlled LNG carriers have been sub-chartered to third parties. The willingness to fix vessels as rates declined suggests Qatar is prioritising fleet utilisation over waiting for a market recovery.