Qatar has extended the force majeure on liquefied natural gas (LNG) supplies for European and Asian buyers for another month, as uncertainty surrounding the full restoration of shipping through the Hormuz Strait continues to limit energy flows from the Persian Gulf, Bloomberg reports.
QatarEnergy has informed buyers in Pakistan that LNG cargo cancellations will continue until October, while the force majeure on supplies to Bangladesh has also been extended beyond September. Italian Edison SpA has announced that cancellations have been extended until early November.
LNG flows through the Hormuz Strait remain nearly at zero levels, although traffic of oil tankers is increasing. Rystad Energy analyst Masanori Odaka noted that LNG-carrying vessels are rarer and more expensive assets than oil tankers.
Qatar has nearly halted LNG shipments through Hormuz after two of its fuel-carrying vessels were attacked in July. Prior to that, nearly one-fifth of global LNG supplies passed through the strait.
As a result of the supply cuts, LNG prices in Europe and Asia have risen to nearly double pre-war levels. If disruptions continue, competition between the two regions for limited cargoes may intensify, especially with winter approaching.
The Ras Laffan complex in Qatar continues to operate at reduced capacity following the March attack and shutdown but remains in a state of readiness for rapid restart in the event of the reopening of the Hormuz Strait.
