Bangladesh will not receive Qatari liquefied natural gas (LNG) cargoes until November after QatarEnergy extended force majeure notices, two trading sources said on Monday.
Clients in Asia, including Bangladesh and Pakistan, were informed that the force majeure notices had been extended until November. Meanwhile, the hunt for gas in Europe in the coming winter season will fuel a competition with Asian clients for limited available global supply.
QatarEnergy, however, did not immediately respond to a request for comment, reports Reuters.
Italian utility Edison, one of QatarEnergy’s biggest customers in Europe, also said on Monday it will not receive LNG cargoes until the beginning of December.
This is the latest extension under a force majeure notification first issued in April following disruptions caused by the US-Iran war.
Edison holds a long-term contract with QatarEnergy for the supply of 6.4 billion cubic metres of natural gas per year to Italy, around 10 per cent of the country’s total consumption. In a message on an Italian energy markets platform, Edison said QatarEnergy would cancel a further six LNG cargoes, taking the total undelivered shipments to 35. Edison has replaced 23 cargoes so far, turning mainly to US suppliers.
With the winter season starting within days, buyers in Europe will have to look elsewhere to refill gas storage inventories ahead of the coldest months. That will fuel competition with Asian clients for limited available global supply and keep gas prices elevated. While Italy is confident it will meet the European Union’s target for its gas buffer, several countries, including Germany, are rushing to fill their storage tanks.
Qatar is among the Iran conflict’s biggest economic casualties, with its LNG exports slashed by 96 per cent, Reuters calculated at the end of August.
While neighbouring Gulf exporters have managed to ship oil secretly out of the Strait of Hormuz, Qatar had exported just 18 LNG cargoes until end-August, down from 509 in the same period last year, according to data intelligence firm ICIS.
