QatarEnergy will extend its suspension of liquefied natural gas (LNG) deliveries to Italian utility Edison until the end of December 2026, prolonging disruptions caused by the Iran war and damage to Qatar’s export infrastructure that resulted from Iranian missile and drone strikes.
Edison disclosed the extension on Tuesday in a message on the platform operated by Italy’s energy market manager, GME.
QatarEnergy notified the company that force majeure on LNG deliveries would continue beyond the previous deadline in early December.
“The extension will affect three additional LNG cargoes intended for Edison, one of QatarEnergy’s biggest customers in Europe,” the Italian utility said.
QatarEnergy first notified Edison of cancelled deliveries in April following trade disruptions and damage to its LNG plants in Qatar caused by the Iran war, which began in late February.
Edison has a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of natural gas annually to Italy, equivalent to around 10% of the country’s total consumption.
The agreement, which began in 2009, has a duration of 25 years.
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.