QatarEnergy has announced plans to declare force majeure on certain long-term liquefied natural gas (LNG) supply contracts due to disruptions in production and supply.
The companies affected include customers in Italy, South Korea, Belgium and China, reported Reuters.
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QatarEnergy’s decision follows a series of regional disturbances attributed to the ongoing conflict involving the US, Israel and Iran.
Iranian missile and drone attacks have targeted oil and gas facilities across the Middle East, notably in the Gulf region, drawing widespread international criticism.
As part of these actions, Iran has effectively blocked the Strait of Hormuz, a crucial shipping route through which approximately 20% of the world’s oil and LNG pass.
These developments have led to increased concerns as global energy prices continue to rise.
Last week, QatarEnergy reported that an Iranian missile strike on the Ras Laffan gas facility has significantly impacted Qatar’s LNG export capacity, reducing it by approximately 17%.
This reduction is estimated to cost $20bn (QR72.8bn) in annual revenue and has major implications for markets in Europe and Asia.
The attack damaged two key LNG production units, known as Trains 4 and 6, which together contribute 12.8 million tonnes per annum (mtpa) of output.
Train 4 operates under a joint venture, with QatarEnergy holding a 66% stake and ExxonMobil 34%.
Similarly, Train 6 involves a partnership between the two companies, with QatarEnergy owning 70% and ExxonMobil 30%.
Restoration efforts to repair the damage and return to full production are expected to take three to five years, keeping 12.8mtpa of LNG off the market during this period.
Tensions in the region intensified following Israeli military actions against Iran’s offshore South Pars gas field, leading to retaliatory missile strikes by Iran targeting energy facilities in Qatar and Saudi Arabia.
