Shell declares force majeure on LNG contracts from Qatar

"Shell, the world's largest liquefied natural gas (LNG) trader, has declared force majeure on LNG cargoes it buys from QatarEnergy and sells to its clients worldwide. Qatar, the world's second largest exporter of LNG, announced last week a production halt at a facility that produces 77 million tonnes per annum (mtpa) and declared force majeure on LNG shipments."

"Other Qatari LNG buyers, including TotalEnergies and some Asian companies, have received force majeure notices from Qatar and told customers they would not be selling them Qatari LNG as long as the facilities remain closed. Omani trading house OQ has also declared force majeure to its customer in Bangladesh due to halted Qatari supply."

"Qatari Energy Minister Saad al-Kaabi told the Financial Times last week that it would take weeks to months to return to normal deliveries, even if the war ended today. Both Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the company's enormous North Field expansion project, which aims to boost production capacity by 2027."

Qatar, the world's second-largest LNG exporter, halted production at a facility producing 77 million tonnes annually and declared force majeure on LNG shipments. Shell, the world's largest LNG trader, declared force majeure on Qatari cargoes it purchases and resells globally. Other major buyers including TotalEnergies and Asian companies received force majeure notices from Qatar and informed customers they would not supply Qatari LNG while facilities remain closed. Omani trading house OQ also declared force majeure to its Bangladesh customer due to halted Qatari supply. Shell and TotalEnergies, both long-term QatarEnergy partners in the North Field expansion project, typically purchase 6.8 and 5.2 million tonnes annually respectively. Qatar's Energy Minister stated recovery would take weeks to months even if current circumstances resolved immediately.

Read at www.aljazeera.com