Qatar's LNG Exports Collapse Amid Six-Month Supply Disruption

Qatar's liquefied natural gas (LNG) exports have nearly come to a halt due to the ongoing supply disruption, which has lasted for nearly six months. Italian energy company Edison announced that QatarEnergy has extended the LNG force majeure period once again, canceling five additional cargoes of LNG scheduled for delivery from late September to early November.

This brings the total number of canceled LNG cargoes to 29, corresponding to approximately 3.8 billion cubic meters of natural gas. Edison signed a 25-year long-term gas supply contract with QatarEnergy in 2009, which accounts for about 10% of Italy's total natural gas demand.

As a result, the company has secured 21 alternative LNG cargoes totaling approximately 2 billion cubic meters of natural gas through its Adriatic Sea LNG receiving terminal. This offsets part of the supply gap caused by the canceled QatarEnergy shipments.

Qatar's LNG exports have plummeted by 96% year-on-year, with only 18 export cargoes completed in the same period last year, compared to 509. The loss of natural gas sales revenue is approximately $24 billion, equivalent to five months of the country's fiscal revenue.