Qatar halts gas liquefaction, global markets face shortfall

On Wednesday, Qatar invoked a ‘force majeure’ clause on gas exports in connection with the US‑Israeli war against Iran. According to sources, it could take at least a month to return to normal production volumes. Global gas markets will therefore face shortages even if the conflict ends immediately.

Qatar accounts for approximately 20 per cent of global liquefied natural gas (LNG) exports.

The state-owned company Qatar Energy halted gas production this week and is set to stop liquefaction completely on Wednesday. Sources said the facilities would not be restarted for at least two weeks. After the decision to resume operations, they said it would take another two weeks for production to return to full capacity. The company did not respond to a request for comment.

All Qatari LNG exports pass through the Strait of Hormuz, where shipping has almost come to a halt due to the conflict and Tehran’s retaliatory measures. Qatar supplies gas mainly to Europe and Asia, with more than 80 per cent of its customers being countries such as China, Japan, India, South Korea and Pakistan.

The force majeure clause exempts the parties from liability for failure to deliver in the event of circumstances beyond their control. According to sources, Qatar Energy is contacting customers in Asia and Europe, but it is not yet clear how long the shutdown will last.

(reuters, max)