Qatar Energy is stopping LNG supplies.
Qatar Energy will not be able to supply liquefied natural gas (LNG) to some Asian customers, including Bangladesh and Pakistan, until November and early December due to the closure of the Strait of Hormuz, the company said on Monday (September 28) by extending its notice of unavoidable circumstances.
The first supply disruption occurred in April due to the conflict between the United States and Iran. According to Reuters, Qatar’s LNG exports have fallen by 96 percent due to the economic damage caused by the conflict. While it shipped 509 LNG cargoes at this time last year, it has only been able to ship 18 cargoes by the end of August this year.
Another Qatar Energy customer, Italian company Edison, said Qatar Energy had cancelled six more LNG cargoes, bringing the total number of shipments not delivered to 35. The company, which supplies about 10 percent of Italy’s gas consumption, currently relies mainly on US suppliers to meet the shortfall. The company has had a long-term 25-year contract with Qatar Energy since 2009.
Competition between Asian and European countries for limited global supplies of natural gas is expected to intensify and gas prices are expected to remain skyrocketing as the winter season approaches. Several countries, including Germany, are already taking rapid steps to replenish their reserves, and Qatar Energy did not immediately comment on the matter.
Source: Reuters
