QatarEnergy declares force majeure on part of LNG supply contracts

According to media reports, QatarEnergy has declared force majeure on certain long-term LNG supply contracts after missile attacks earlier this month damaged production facilities at Ras Laffan, impacting selected buyers in Italy, Belgium, South Korea, and China.

The company stated that two LNG trains and one gas-to-liquids (GTL) train were affected in the attacks. In addition, output of condensate, LPG, helium, naphtha, and sulphur has been significantly reduced. QatarEnergy had earlier indicated that around 17% of its total capacity was impacted, with full restoration potentially taking up to five years.

Despite the disruption, European gas markets showed a limited immediate reaction, as much of the impact had already been priced in following last week’s strike. At that time, Dutch TTF prices briefly surged to €61/MWh before easing.

Although prices have moderated since then, they remain nearly double pre-conflict levels, reflecting ongoing concerns that supply disruptions could persist in the near to medium term.

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