QatarEnergy has extended the force majeure on LNG deliveries to major markets in Europe and Asia until the end of 2026. This decision has caused natural gas prices in Europe to reach their highest level since autumn 2022.
Details of the Force Majeure Extension
The Italian gas importer Edison has announced that it received a notice from QatarEnergy regarding the extension of the force majeure on LNG deliveries that has been in effect since April 2026. According to this notice, QatarEnergy cannot deliver three additional LNG cargoes to the Adriatic LNG terminal in Italy, which extends the force majeure until the end of December 2026.
Read more: Ovintiv Announces $890 Million Acquisition of Logan Energy
Impact on the Gas Market in Asia
The force majeure on Qatar's LNG deliveries to price-sensitive markets in South Asia, including Pakistan and Bangladesh, has also been extended until the end of this year. The head of Petrobangla in Bangladesh, Abdulmanan, stated that they are trying to secure additional spot cargoes to fill the supply gap, but this comes with significant costs and puts a lot of pressure on their financial resources.
Pakistan is forced to spend over $1 billion to secure LNG gas in the winter months, while spot prices have reached their highest level in four years due to widespread disruptions in Qatar's contractual supply. Additionally, the Pakistani government has planned to import 10 LNG cargoes from the spot market, which will be twice the price of LNG cargoes imported from Qatar under long-term contracts.
LNG flows in the Strait of Hormuz have not significantly improved, while oil exports from the Middle East have increased, leading to rising prices in Europe and Asia.
In Europe, gas prices at the Dutch Title Transfer Facility (TTF), which is considered the benchmark for gas trading in Europe, increased by 1.5% at 8:30 AM Amsterdam time, reaching $108.51 (€97.53 per megawatt hour). This price is currently the highest level since the energy crisis of 2022, when Europe had to face its first winter without Russian pipeline gas.
Read more: Management of the Third Gasoline Quota Consumption in Kurdistan Handed Over to Citizens · Iran's War Led to a $20 Billion Increase in Europe's Natural Gas Costs
