Qatar Extends LNG Force Majeure as Hormuz Crisis Drags On
State-owned QatarEnergy has extended a force majeure on liquefied natural gas (LNG) deliveries to Asian and European customers through the end of November, citing ongoing disruptions to shipping through the Strait of Hormuz. The extension follows months of sharply reduced exports after the Iran war constrained transit via the chokepoint.
Why It Matters
The move prolongs supply uncertainty for buyers across Asia and Europe and underscores continuing logistical limits on LNG flows from one of the world's largest exporters. Reuters and Bloomberg data cited in the source show the disruption has driven drastic export declines and heavy revenue losses for QatarEnergy.
Key Facts
- Issuer: QatarEnergy (state-owned)
- New force majeure period: Through end-November (extended from end-October)
- Additional extension for Edison: Extended to early December (per Edison)
- Customers notified: Buyers in Bangladesh, Pakistan, at least one buyer in India, and Italy's Edison
- Export decline (reported): As much as 96% drop in exports
QatarEnergy has notified several customers that it is extending a force majeure on LNG deliveries to Asia and Europe through the end of November, according to people briefed on the matter and reporting by Bloomberg. The company initially set the force majeure to run to the end of October but has prolonged the measure as LNG traffic through the Strait of Hormuz remains largely obstructed amid the prolonged U.S.-Iran stalemate over the strategic waterway.
Italy's Edison said its own force majeure window has been pushed out to early December. Qatar had previously extended Edison's delivery relief to early November, but the sustained blockage of shipments at the Strait has prompted further delay.
The impact on Qatar's LNG business has been severe: Reuters calculations cited in the source estimate approximately $24 billion in lost sales six months after the Iran war began, with exports plunging by as much as 96%. Data from ICIS, as reported by Reuters, show Qatar shipped just 18 cargoes in the recent period versus 509 cargoes in the same period a year earlier.
Some limited LNG movements have occurred via transit through the Strait of Hormuz or through ship-to-ship transfers offshore Oman involving cargoes from Qatar and the United Arab Emirates, but those volumes remain a small fraction of pre-conflict levels. The source notes that unlike crude oil, LNG is much harder to reroute via shuttle shipments and reload via ship-to-ship transfers, constraining alternative logistics options for Persian Gulf gas exporters.
Keep Reading
Zelenskyy Warns Russia Wants to Widen War Beyond Ukraine
High Freight Costs Push More U.S. LNG Toward Europe
What’s Putin’s Secret Post-Election Strategy To Test NATO?
