QatarEnergy Extends LNG Force Majeure into Early December, Italy's Edison Says

Dow Jones
09/28
 
 

QatarEnergy has extended force majeure on liquefied-natural-gas shipments for Edison, one of its biggest European customers, through early December, a spokesperson for the Italian utility said Monday.

The state-owned energy giant told Edison that it would be unable to deliver six additional cargoes for Italy's Adriatic LNG import terminal. A force majeure clause allows a supplier to suspend contractual obligations without penalty when events beyond its control prevent delivery.

The move brings to 35 the number of LNG cargoes now subject to force majeure, representing about 4.6 billion cubic meters of natural gas, Edison said.

Qatar, one of the largest LNG exporters, accounted for nearly one-fifth of global LNG trade before the Iran war began Feb. 28. Iranian strikes later knocked out 17% of capacity at the country's Ras Laffan hub, while the near-closure of the Strait of Hormuz sharply curtailed tanker traffic.

QatarEnergy didn't respond to a request for comment.

Edison, a unit of France's EDF, has a long-term contract with QatarEnergy to import 6.4 billion cubic meters of gas a year into Italy. The Italian company said it can secure alternative supplies and meet all of its commitments to customers.

 
 

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