With shipping through the Strait of Hormuz disrupted, QatarEnergy will not be able to supply liquefied natural gas (LNG) to Bangladesh beyond September. Pakistan has also been told to expect canceled LNG cargoes through October. Several buyers in Europe have received similar notices.
Italian energy company Edison said Friday that QatarEnergy has told it five more LNG cargo deliveries will be suspended. Those cargoes had been due to arrive at Italy’s Adriatic LNG terminal between late September and early November.
Citing Bloomberg and Reuters reports, Doha News said QatarEnergy has extended, past September, the grace period for meeting its contractual obligations to supply LNG to Bangladesh, citing “force majeure” — circumstances beyond its control.
QatarEnergy suspended LNG operations and declared force majeure on March 4, after the war between the US and Iran began. That decision has been repeatedly extended since, as shipping conditions through the Strait of Hormuz have failed to improve.
In March, a missile strike on QatarEnergy’s Ras Laffan facility damaged infrastructure. QatarEnergy President and CEO, and Minister of State for Energy Affairs, Saad Sherida Al-Kaabi said the strike cut Qatar’s LNG export capacity by 17 percent.
In July, Qatar’s LNG tanker Al Rekayyat was attacked while passing through the Strait of Hormuz. Qatar blamed Iran for the attack. The vessel’s port side was damaged, though its crew was evacuated safely.
Regular LNG transport through the Strait of Hormuz has effectively come to a halt since.
Citing ICIS data, Euronews reported that Qatar exported just 18 LNG cargoes in the first six months of the war, down from 509 in the same period the previous year.
As a result, Qatar’s revenue from gas sales has fallen by roughly $24 billion.