QatarEnergy said it would extend the force majeure on its exports of liquefied natural gas until the middle of August, Reuters has reported, citing Italy’s Edison, which has a long-term supply deal with the Qatari company.
Originally, the force majeure was set to run until early July. The declaration followed Iranian strikes on Qatar’s LNG hub that caused extensive damage. In a notice to buyers, the state energy giant said in early March that the declaration follows its decision to halt LNG and associated production after Iranian strikes targeted facilities linked to Ras Laffan and Mesaieed Industrial City. The shutdown affects LNG output as well as downstream products including urea, polymers, methanol and aluminum.
For Edison, the impact of the force majeure has totalled 17 LNG cargoes or 2.2 billion cu m of natural gas, the Italian company said. Its contract with QatarEnergy is for an annual amount of 6.4 billion cu m.
Edison, like other LNG buyers from Qatar, has turned to U.S. gas for volume replacement. For March alone, U.S. exports of the superchilled fuel hit an all-time high of 11.7 million tons, with Louisiana facilities accounting for close to two-thirds of total exports. Most of the U.S. liquefied gas is going to Europe, which is struggling to replenish severely depleted storage levels after a cold winter.
QatarEnergy, meanwhile, is also turning to the United States for LNG supply. The company is a majority partner in the Golden Pass LNG project in Texas, holding 70% in the operation, with Exxon holding the remainder. The project achieved first liquefied natural gas production from the first of its three trains at the Sabine Pass, Texas, facility, in March. The milestone signals the transition of the $10+ billion project into its operational phase, with initial cargo exports anticipated in the second quarter of 2026.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com
- Oil Prices Jump After U.S. Strikes Iranian Missile Sites
- Europe’s Gas Prices Drop 5% On Renewed U.S.-Iran Talks Optimism
- U.S.-Iran Deal Delayed as Trump Refuses to “Rush” Agreement
