Qatar Energy has announced that due to the continuation of the force majeure situation, it is unable to deliver liquefied natural gas (LNG) shipments to its customers in Europe and Asia. This situation will continue until the closure of the Strait of Hormuz and has particularly impacted deliveries to the Italian company Edison.
Extension of Force Majeure Notice
The Italian company Edison, which is considered one of Qatar Energy's largest customers in Europe, has announced that it will not receive any LNG shipments from Qatar until early December. This notice is part of the extension of the force majeure situation that was first issued in April due to disruptions caused by the U.S. war against Iran.
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Impact on Asian Customers
Two trade sources have reported that customers in Asia, particularly in Bangladesh and Pakistan, have also been informed that the force majeure situation has been extended for them until November. This situation will directly affect the energy supply of these countries and put pressure on their need for liquefied natural gas.
Additionally, reports indicate that Qatar, as one of the largest exporters of liquefied natural gas in the world, is one of the countries that has suffered the most economically from this conflict. The country's LNG exports have decreased by 96% compared to last year.
Export Challenges from the Strait of Hormuz
While neighboring countries in the Gulf region have been able to unofficially export their oil from the Strait of Hormuz, the data information company Icis has reported that Qatar exported only 18 LNG shipments by the end of August. This figure was 509 shipments during the same period last year, indicating a severe decline in the country's exports due to the current conditions.
Economic Consequences
The current conditions have not only impacted Qatar's gas exports but could also lead to an increase in gas prices in global markets. The severe reduction in supply may benefit other gas exporters, but for Qatar, which relies on gas export revenues, it will create a serious economic crisis.
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