Iran strikes: QatarEnergy declares Force Majeure
QatarEnergy said on Wednesday it was declaring Force Majeure to its buyers affected by the halt in production of liquefied natural gas (LNG) and associated products.
The call comes a day after QatarEnergy said it was stopping the production of some downstream products in the Qatar, including urea, polymers, methanol, aluminum and other products.
On Monday, QatarEnergy ceased production of LNG and associated products due to military attacks on the company’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the state.
“QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” it said in a statement.
Earlier on Wednesday, India's Petronet LNG Limited (PLL) issued Force Majeure notices to QatarEnergy and its off-takers due to ongoing Middle East hostilities preventing safe LNG vessel transit through the Strait of Hormuz. A Force Majeure is a crucial contractual clause in the case of LNG producers that helps them avert legal obligation to deliver LNG cargoes when unexpected, uncontrollable, and extraordinary events make it impossible or unsafe to do so.
State-owned QatarEnergy is a global leader in the production of LNG, and its operations in Ras Laffan Industrial City constitute a global hub for natural gas, primarily focused on the production, processing, and export of LNG and related hydrocarbons.
Almost all of the LNG is then exported through the Strait of Hormuz, which transports approximately 25% of the world's oil and gas from major suppliers.
