Qatar Extends LNG Force Majeure as Hormuz Shipping Disruption Persists

Deep News
09/28

Energy shipments through the key Hormuz corridor remain blocked, and Qatar has extended its force majeure declaration on liquefied natural gas supply to Asia and Europe by another month.

People familiar with the matter said state-owned QatarEnergy notified Pakistan and Bangladesh this week that canceled LNG cargo deliveries will continue through November.

Two other sources said at least one Indian buyer has also been told the force majeure remains in effect, while Italy's Edison said its gas supply will be suspended until early December. QatarEnergy did not immediately respond to a request for comment.

Since the outbreak of the Iran conflict, the company has updated LNG customers on its force majeure status almost every month and canceled scheduled cargoes. Although Qatar's shipments through the corridor picked up this month, flows remain far below pre-war levels.

Iran recently said it will not ease conditions for resuming voyages through the Strait of Hormuz, while U.S. President Donald Trump has sent mixed signals about his willingness to reach a deal. The United States and Iran are still struggling to secure a peace agreement, leaving traffic constrained through a waterway that carried about one-fifth of global LNG volumes last year.

Tighter supply has pushed Asian and European LNG prices to their highest levels since late 2022, and household gas bills in the Northern Hemisphere could rise this winter. Qatar's Ras Laffan LNG export facility was damaged in an attack in March and is currently operating at reduced capacity. Once shipping through the Strait of Hormuz resumes, the plant is ready to ramp up output quickly.

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