QatarEnergy Extends LNG Force Majeure as Hormuz Bottleneck Persists

QatarEnergy notified buyers in Pakistan and Bangladesh this week that cargo cancellations will persist through October. European partners are feeling the strain as well; Italy’s Edison confirmed that their supply disruptions, which began in April, are now slated to continue into early November. By late July, Edison had already recorded 24 canceled cargoes, amounting to roughly 3 billion cubic meters of lost natural gas supply.

Unlike crude oil, which producers have successfully moved via ship-to-ship transfers to bypass regional blockades, LNG logistics remain rigid. The infrastructure required for cryogenic transport prevents the kind of shuttle-shipping currently utilized for oil. Consequently, the export volume from Qatar has cratered by 96 percent compared to last year. Data from ICIS indicates that Qatar exported only 18 cargoes during the recent period, a staggering drop from the 509 shipments recorded during the same timeframe last year. This operational paralysis has cost the nation approximately $24 billion in lost revenue.