Force majeure on QatarEnergy LNG extends to fourth month

• Unable to export cargoes
• Ras Laffan attacked in March
• Barzan explosion killed 13

QatarEnergy’s disruption to liquefied natural gas (LNG) exports will extend into a fourth month after the state-owned producer told Italy’s Edison that it would be unable to deliver cargoes due by mid-September.

The latest extension to QatarEnergy’s force majeure means the Qatari group has now cancelled 21 LNG shipments due between April and September, Edison said in a statement.

QatarEnergy first announced force majeure on its LNG exports in early March, after Iranian attacks on its sprawling Ras Laffan facility. Force majeure allows to suspend contractual obligations because of an unforeseen event.

The March attacks on Ras Laffan caused major disruption. Some 17 percent of Qatar’s LNG capacity is expected to remain offline for up to five years while two facilities are repaired.

That loss amounts to about 12.8 million tonnes a year of LNG production from Qatar’s total capacity of 77 million tonnes.

Iran hit oil and gas facilities across the Gulf with missiles and drones during the early stages of the conflict. The bill to repair the damage is expected to run into tens of billions of dollars, experts say.

QatarEnergy said in late May that it expected the force majeure on Edison to extend to mid-August.

Further reading:

• QatarEnergy to explore for gas off Cyprus
• QatarEnergy extends force majeure on Italy’s Edison until August
• QatarEnergy invests in Uruguay offshore blocks

Edison, the Italian branch of French energy giant EDF, said it had managed to replace about 14 LNG cargoes due at the Adriatic LNG terminal in northern Italy.

QatarEnergy is also managing the fallout from an accident at its Barzan local gas supply facility at Ras Laffan, where an explosion killed 13 people.

Analysts said Qatar was still on track to restore all available LNG production by October following the deadly blast, excluding the 17 percent from two trains, although this was before the latest delay with Edison.

Edison said the 21 cargoes from Qatar were due to deliver 2.7 billion cubic metres (bcm) of gas. Italy’s power system operator Snam said the country’s annual demand was 62 bcm in 2024.