Yemen Herald News 
Shell has officially declared force majeure on liquefied natural gas (LNG) cargoes sourced from QatarEnergy, as reported by Reuters. This decision follows Qatar’s announcement of a production halt at a facility that produces 77 million tonnes per annum (mtpa) of LNG, coupled with QatarEnergy’s own declaration of force majeure on LNG shipments. The situation has raised concerns about potential disruptions in global gas markets.
The force majeure declaration by Shell affects its contracts with clients worldwide, indicating that the company will not be able to fulfill its obligations due to circumstances beyond its control. Other buyers of Qatari LNG, including TotalEnergies and several Asian companies, have also received similar notices from Qatar, informing them that they will not be able to supply Qatari LNG while the facilities remain closed. Additionally, Omani trading house OQ has declared force majeure to its customers in Bangladesh due to the halted supply from Qatar.
While Shell has not provided further comments on the matter, it is known that both Shell and TotalEnergies maintain long-term partnerships with QatarEnergy and are involved in the North Field expansion project, which aims to increase production capacity by 2027. Analysts estimate that Shell imports approximately 6.8 mtpa of Qatari LNG, while TotalEnergies imports around 5.2 mtpa.
Qatar’s Energy Minister, Saad al-Kaabi, indicated that it could take “weeks to months” for normal deliveries to resume, even if the ongoing conflict affecting the region were to cease immediately. The force majeure notices sent to clients specified that LNG deliveries for March would remain unaffected, with disruptions expected to begin in April.
As the situation develops, the implications of these force majeure declarations may extend beyond the immediate parties involved, potentially impacting global LNG supply chains and pricing dynamics in the energy market.
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