QatarEnergy Declares Force Majeure on Some LNG Contracts Amid Tensions with Iran

QatarEnergy Declares Force Majeure on LNG Supply Contracts Amid Production Disruptions

QatarEnergy has announced that it is invoking force majeure on certain long-term liquefied natural gas (LNG) supply contracts due to production disruptions caused by the ongoing conflict between the US and Israel in Iran. The move affects customers in Italy, Belgium, South Korea, and China.

The declaration comes as a result of production and supply chain disruptions linked to the war on Iran, which has also affected other countries including Kuwait and Bahrain. Force majeure is a clause in contracts that allows a party to be excused from its obligations due to unforeseen events.

In recent weeks, Iranian missile and drone strikes across the Middle East have targeted oil and gas facilities, prompting international condemnation. The attacks have led to the closure of the Strait of Hormuz, a critical waterway through which approximately one-fifth of the world’s oil and LNG supplies transit.

QatarEnergy CEO Saad al-Kaabi previously stated that an Iranian attack on Qatar’s Ras Laffan gas facility resulted in significant damage to two of its 14 LNG trains and one of its two gas-to-liquids facilities. The repairs are expected to sideline approximately 12.8 million tonnes of LNG production per year for three to five years.

The company has not specified the exact duration of the force majeure declaration or the potential impact on global energy markets.

Source: Al Jazeera