Qatar Energy has extended the state of emergency for LNG (liquefied natural gas) supply due to the continued disruption of traffic from the Strait of Hormuz. This decision follows disruptions caused by regional tensions, particularly the U.S. and Israeli regime's war against Iran, and means that the company will be unable to deliver LNG shipments to European customers, including Edison Energy of Italy, as well as Asian customers.
Impact of Disruptions on Qatar's LNG Exports
Edison Energy of Italy, one of Qatar Energy's major customers in Europe, has confirmed that its LNG shipments will not be delivered until early December of this year. According to statistics, Qatar's LNG exports have sharply declined due to these disruptions, with calculations indicating that the country is facing a 96% reduction in LNG exports.
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Qatar Energy initially announced a state of emergency for LNG supply in April 2023 due to special conditions, and this situation has now been extended until November. Trade sources have also reported that this decision has been communicated to Asian customers in Bangladesh and Pakistan.
Competition for Gas Supply in Winter Season
With the onset of winter and the need for heating, European buyers will have to turn to other sources to meet their needs. In this situation, competition between European and Asian customers for receiving liquefied natural gas will increase, which could lead to sustained high gas prices in global markets.
Although Italy is confident in achieving the target set by the European Union for completing gas storage reserves, other countries, including Germany, have accelerated the filling of their storage tanks. Edison has announced to the Italian energy market that Qatar Energy has canceled 6 more LNG shipments. In total, the undelivered shipments to this company have reached 35.
Edison, a subsidiary of the French company EDF, has so far replaced 23 shipments and has increasingly turned to American suppliers to compensate for shortages resulting from supply from the Gulf region. This company has signed a long-term contract with Qatar Energy since 2009 to supply 6.4 billion cubic meters of natural gas annually for Italy.
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