LONDON: QatarEnergy said on Tuesday it had determined that it needed to declare force majeure on some of its affected long-term LNG supply contracts, with counterparties including customers in Italy, Belgium, South Korea, and China.
The company had already invoked the notice regarding its LNG tankers due to security risks in the region and the difficulty of navigating the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of the world’s oil and LNG passes.
The move came despite US President Donald Trump claiming there had been “very good” talks between the White House and Tehran in a move to end the conflict which began on Feb. 28.
Iranian officials have poured cold water on any suggestions a truce was being negotiated, with Tehran's parliamentary speaker insisting Trump was seeking “to manipulate the financial and oil markets.”
In a notice posted on the London Stock Exchange, QatarEnergy said the missile attacks on its Ras Laffan production hub on March 18-19 resulted in significant damage to the plant’s liquefied natural gas and gas-to-liquids infrastructure.
“Two LNG facilities trains and one GTL facility train have been damaged,” said the statement, adding: “As a result of these events, QatarEnergy has determined that this results in the need to declare a force majeure event to some of its affected long-term LNG supply contracts, with counterparties including customers in Italy, Belgium, South Korea, and China impacted by the disruption. Beyond LNG, the attacks have also resulted in materially reduced output of condensate, liquefied petroleum gas, helium, naphtha, and sulphur.”
Other energy companies in the region that have invoked force majeure since the hostilities began include Bahrain’s state-owned Bapco Energies, which was forced to declare force majeure after a strike hit its refinery complex in Al-Ma’ameer, and Kuwait Petroleum Corp.
