A day after news emerged about QatarEnergy extending its suspension of liquefied natural gas (LNG) deliveries to Italian utility Edison until the end of December 2026, the Qatari entity has said that some South Asian clients will face the same situation as well.
In a message on the platform of Italy’s energy markets manager GME, Edison said QatarEnergy had extended force majeure on LNG deliveries to the end of December from a previous early-December deadline.
“A further three LNG cargoes that were intended for the Italian utility, one of Qatar’s biggest customers in Europe, will be affected by the suspension,” Edison said.
Clients in Pakistan and Bangladesh were also informed that force majeure notices had been extended until the end of this year, one person with knowledge of the matter and state-run Petrobangla told Reuters.
“We are trying to secure additional spot cargoes to bridge the supply gap, but at a significant cost, driving our import bill sharply higher and putting considerable pressure on our finances,” said Petrobangla Chairman Abdul Mannan.
For India’s Petronet LNG, Qatar has extended force majeure on LNG supplies for November, reports suggested.
The Gulf supplier has not been delivering to Edison since April due to disruptions caused by the Iran war.
Edison holds a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of natural gas per year to Italy, around 10% of the country’s annual consumption.
The contract, which has been in force since 2009, has a total duration of 25 years.
The lack of supply from Qatar, a low level of gas storage in Europe, and gradually cooler weather have pushed the benchmark Dutch price for gas above 95 euros per megawatt hour this week, close to its highest levels since December 2022.
As disruptions to shipments through the Strait of Hormuz continue to constrain its supply operations, QatarEnergy has been purchasing LNG on the spot market from US exporters to meet some of its customer commitments.
The company is also pursuing longer-term supply agreements with American producers, strengthening its access to export capacity outside the Gulf.
As per the reports, QatarEnergy is in talks with Woodside Energy to purchase up to three million metric tons of LNG annually from its Louisiana LNG plant under construction.
If finalised, the agreement could cover supplies from the planned 16.5-million-tonne-per-year export facility for between 15 and 20 years, reported Reuters.
QatarEnergy also owns a 70% stake in the Golden Pass LNG facility under development in Louisiana.
Once completed, the project will have the capacity to export up to 18 million metric tons of LNG annually.
The Woodside discussions follow another long-term supply agreement announced by Cheniere Energy last Thursday.
Cheniere said it had agreed to supply QatarEnergy with four million metric tons of LNG annually, with two million tonnes sourced from its Sabine Pass facility in Louisiana and another two million tonnes from its Corpus Christi terminal in Texas.
QatarEnergy is also in advanced talks with Venture Global over a long-term supply agreement for at least three million metric tons of LNG per year.
Venture Global and Woodside’s Louisiana LNG project are among the US suppliers with the largest volumes of uncommitted LNG capacity.
However, securing additional US supplies could come at a higher cost.
Louisiana LNG is seeking liquefaction fees above USD 2.50 per million British thermal units (mmBtu), exceeding average US market prices, sources told Reuters.
The project is offering potential buyers greater contractual flexibility, including shorter agreements, in exchange for higher fees.