Qatar's LNG Force Majeure Extension Drives Global Prices Up

Natural gas prices in Asia and Europe surged on Friday after Qatar extended its force majeure on LNG shipments into early November. The move has intensified worries about global LNG availability ahead of the winter season, when demand for refueling depleted inventories typically spikes.

Asian utilities have been bidding higher than European buyers for LNG cargoes this summer as the pool of Middle East supply shrinks. Qatar's state-owned energy firm, QatarEnergy, is one of the key players in the region and its decision to prolong the force majeure has raised concerns about the reliability of LNG supplies.

In Europe, benchmark natural gas prices climbed to their highest point since 2023, while the Dutch Title Transfer Facility (TTF) price advanced 2% during morning trading in Amsterdam, exceeding $80 per megawatt-hour (MWh). Europe's gas storage facilities are only about 63% full as of this week, below a five-year average of roughly 80%, which has driven prices up.