QatarEnergy declares force majeure to LNG buyers

State-owned LNG giant QatarEnergy has declared force majeure to its affected LNG buyers, two days after it stopped production of LNG due to military attacks on its operating facilities in Ras Laffan and Mesaieed.

QatarEnergy announced this in a statement on Wednesday.

“QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” it said.

The LNG producer did not provide further details.

Force majeure refers to a contractual clause that excuses the LNG producer from fulfilling its obligations, such as delivering cargoes, due to unexpected, extraordinary, and unavoidable events beyond its control.

LNG prices and ship charter rates skyrocketed on Monday after QatarEnergy stopped producing LNG at its giant Ras Laffan complex.

Qatar’s Ministry of Defence said in a statement on Monday that “Qatar was attacked by two drones launched from the Republic of Iran.”

“One drone targeted a water tank belonging to a power plant in Mesaieed, and the other targeted an energy facility in Ras Laffan Industrial City, belonging to QatarEnergy, without reporting any human casualties,” it said.

Qatar is one of the world’s largest LNG producers.

QatarEnergy is currently working on the giant North Field LNG expansion program, which includes the North Field South, North Field East, and North Field West projects.

Together, these will raise Qatar’s LNG production capacity in Ras Laffan from the current 77 mtpa to 142 mtpa in 2030.​

Before this new announcement, India’s largest LNG importer Petronet LNG declared force majeure to its offtakers after it received a notice from QatarEnergy.

Petronet also issued a force majeure notice to QatarEnergy in respect of its three LNG tankers, Disha, Raahi, and Aseem, which ship volumes from the giant Ras Laffan plant to India, as they are unable to safely transit through the Strait of Hormuz.

Besides India, Qatari volumes are mostly landing in China, South Korea, as well as in other Asian countries such as Pakistan and Bangladesh, and in some European countries.

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