QatarEnergy has extended force majeure on liquefied natural gas deliveries, with cancellations now stretching into early November for European buyers including Italy's Edison. The extension marks six months of sustained disruption since a regional conflict began restricting traffic through the Strait of Hormuz.
Force majeure covers deliveries to Pakistan and Bangladesh through October. Edison confirmed that cancellations under force majeure extend into early November, according to traders familiar with the situation.
As of July 28, a total of 24 LNG cargoes intended for Edison were subject to force majeure since April, representing approximately 3 billion cubic meters of natural gas that QatarEnergy could not deliver.
Qatar's LNG exports plummeted 96 percent during the six-month disruption. Data from ICIS shows Qatar exported just 18 LNG cargoes, compared with 509 cargoes in the same period last year. Reuters calculations indicate Qatar has lost $24 billion in sales over six months due to export disruptions.
Unlike crude oil, which Persian Gulf producers have shuttle-shipped through Hormuz via ship-to-ship transfers and alternative routes, LNG cannot be reloaded mid-voyage. This constraint prevents Qatar from bypassing the blocked strait for gas exports. Despite recent reports of rebounding crude oil flows, LNG transport has not recovered.
The blockade has exposed a structural vulnerability in global energy supply chains. Qatar, the world's second-largest LNG exporter, remains dependent on the strait for immediate shipments. Treasury Secretary Scott Bessent recently stated the Strait of Hormuz could become obsolete within two years, but current infrastructure limitations mean the strait remains vital for LNG transport in the near term. The sustained disruption forces buyers to adapt to prolonged delivery uncertainty and seek alternative, potentially more expensive, supply sources.
