QatarEnergy moves on supply deals as Gulf energy disruptions deepen

QatarEnergy today declared force majeure on some of its affected long-term liquified natural gas (LNG) supply contracts, with counterparties including customers in Italy, Belgium, South Korea and China.

The move comes amid production disruptions linked to the US-Israeli war on Iran, which has affected Qatar, reports Al Jazeera.

Global energy markets have been reeling since the United States and Israel began attacking Iran in late February.

Iranian missile and drone strikes across the Middle East, including most notably in the Gulf region, have targeted oil and gas facilities, prompting international condemnation, the Al Jazeera report adds.

The essential closure of the Strait of Hormuz, a critical Gulf waterway through which about one-fifth of the world’s energy supplies transit, has also spurred mounting concern as energy prices have soared.

Last week, QatarEnergy CEO Saad al-Kaabi said Iranian attack on Qatar’s Ras Laffan gas facility wiped out about 17 percent of the country’s LNG export capacity, causing an estimated $20bn in lost annual revenue and threatening supplies to Europe and Asia.

Saad al-Kaabi told the Reuters news agency that two of Qatar’s 14 LNG trains, the equipment used to liquefy natural gas, and one of its two gas-to-liquids facilities were damaged in Iranian attacks.

He added that the repairs will sideline 12.8 million tonnes of LNG production per year for three to five years.