Qatar Energy, one of the largest suppliers of liquefied natural gas (LNG) in the world, has announced that it will stop LNG deliveries to Edison Italy and several other customers in South Asia until the end of 2026. This change is due to extraordinary conditions that have arisen in the global gas market.
Impact on Customers
Edison Italy, which is one of Qatar Energy's main customers in Europe, stated in a message published on the Italian energy market management platform that this halt will also include three additional LNG shipments. These shipments will not be delivered to the company until the end of December 2026.
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In addition to Edison, other customers such as Petrobangla in Bangladesh and Petronet LNG in India will also be affected by this decision. Abdul Mannan, the head of Petrobangla, stated that the company is trying to import more spot cargoes to compensate for the supply shortage, but this action incurs very high costs.
Factors Influencing Qatar Energy's Decision
Qatar Energy has stopped deliveries to Edison since April due to disruptions caused by the U.S. and Israeli regime's war against Iran in February. This situation has created significant pressure on the LNG market and led to price increases in this sector.
While Edison has a long-term contract with Qatar Energy under which 6.4 billion cubic meters of natural gas are supplied to Italy annually, this contract has come under pressure due to supply shortages from Qatar, declining gas storage in Europe, and gradually falling temperatures. The benchmark gas price in the Netherlands has reached over 95 euros per megawatt-hour, approaching its highest level since December 2022.
Given the current conditions, the LNG market is expected to remain under pressure, and prices are likely to rise due to supply shortages and high global demand.
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