QatarEnergy has declared force majeure on long-term LNG supply contracts with customers in South Korea, China, Italy, and Belgium, following missile damage to its Ras Laffan facilities last week amid the U.S.-Israeli war against Iran. The attacks, detailed in prior reporting, impacted 17% of Qatar's LNG exports, with repairs expected to take three to five years.
QatarEnergy, Qatar's state-owned energy giant, formally invoked force majeure on Tuesday on select long-term liquefied natural gas (LNG) contracts, as initially warned by CEO Saad Sherida Al-Kaabi earlier this week after missile strikes on its Ras Laffan Industrial City facilities. The attacks on Wednesday and Thursday last week—occurring amid escalating U.S.-Israeli operations against Iran—have disrupted about 17% of Qatar's LNG exports, alongside impacts to condensate, LPG, helium, and other products, as previously reported.
Force majeure clauses relieve parties from obligations due to uncontrollable events. Al-Kaabi, Qatar's Energy Minister, stated on the company website that full repairs will require three to five years, pending cessation of hostilities. This affects key customers including South Korea's KOGAS, China's entities, Italy's Edison, and Belgium's EDFT, potentially disrupting supplies despite Seoul's earlier assurances of alternatives.
The incident has intensified energy market volatility, with the Strait of Hormuz effectively choked off, spiking oil prices and global supply concerns.
