QatarEnergy has extended force majeure on liquefied natural gas supplies to European and Asian buyers by another month, deepening the global LNG disruption caused by the Strait of Hormuz crisis.
The state-owned Qatari energy giant notified Pakistani buyers this week that LNG cargo cancellations will continue into October, with force majeure on supplies to Bangladesh also extended beyond September.
QatarEnergy first declared force majeure on its LNG output in March, when Iran launched a series of attacks targeting Gulf oil and gas infrastructure across the Persian Gulf region.
Iranian missile strikes damaged two LNG-producing trains at Ras Laffan, the world’s largest LNG export facility, cutting production by 12.8 million tons per year and triggering the initial force majeure declaration.
QatarEnergy has estimated that the damage sustained at Ras Laffan would cost the company $20 billion a year in lost revenue, with full repairs potentially taking up to five years to complete.
Following a ceasefire agreement between the United States and Iran in June, which included provisions for reopening the Strait of Hormuz to shipping, QatarEnergy indicated it could restore 50% of LNG production within a month.
By mid-August, Qatar was reported to be capable of restoring up to 80% of pre-war LNG production levels, offering a brief window of cautious optimism for global gas markets.
However, with the ceasefire having collapsed and strikes resumed, the anticipated recovery in Qatari LNG production is now expected to be significantly delayed once again.
The prolonged supply disruption has sent Asian and European gas prices to their highest levels in three years, raising serious concerns about energy security heading into the Northern Hemisphere winter.
Goldman Sachs has warned that European natural gas prices will need to rise sharply by December for storage facilities to reach sufficient inventory levels if the Strait of Hormuz crisis continues to keep spot LNG prices in Asia elevated.
The situation places enormous pressure on energy policymakers across Europe and Asia, as utilities scramble to secure alternative gas supplies ahead of peak seasonal demand.
With no clear timeline for a resolution to the Hormuz crisis, global LNG markets face an extended period of elevated prices, tight supply, and heightened geopolitical risk that shows little sign of easing.
