QatarEnergy extends LNG force majeure to end of 2026
QatarEnergy has prolonged its force majeure on liquefied natural gas deliveries through December 2026, cutting term supply to Europe and Asia and pushing European gas prices to their highest level since the 2022 energy crisis.
Italian importer Edison confirmed it received formal notice from QatarEnergy extending the force majeure, originally declared in April 2026, to the end of the year. The state-owned Qatari firm told Edison it would be unable to deliver three additional cargoes to the Adriatic LNG terminal in Italy.
The disruption also hits price-sensitive buyers in South Asia. A source at Bangladesh’s state energy company Petrobangla told Reuters the force majeure on Qatari cargoes to Bangladesh and Pakistan has likewise been extended into 2026. Petrobangla chairman Abdul Mannan said the company is hunting for spot cargoes to cover the shortfall, warning this is “driving our import bill sharply higher.”
Pakistan is expected to spend more than $1 billion securing winter LNG supply, as it plans to buy 10 cargoes on the spot market at roughly double the cost of its long-term Qatari contracts. Spot LNG prices in Asia have climbed to four-year highs.
Unlike Middle East oil exports, which have largely normalized, LNG flows through the Strait of Hormuz have not recovered meaningfully, keeping pressure on both European and Asian gas benchmarks.
In Europe, the front-month contract at the Dutch Title Transfer Facility (TTF) rose 1.5% to $108.51 (97.53 euros) per megawatt-hour by 8:30 a.m. Amsterdam time on Wednesday, the highest level since the 2022 crisis that followed the loss of most Russian pipeline gas.
Why it matters: Extended Qatari supply disruptions tighten the global LNG market into winter, supporting European gas prices and raising import costs for buyers like Pakistan and Bangladesh. Higher gas prices can feed through to energy-linked currencies, inflation expectations and broader commodity markets, including crude oil.
Source: OilPrice.com