economy
LNG market disruption may continue for months as a top producer withholds some Italian shipments
QatarEnergy extended its force majeure, withholding four additional liquefied natural gas cargoes until September.
TL;DR
- QatarEnergy has extended its force majeure notice, withholding four additional LNG cargoes from Italy until early September.
- A total of 21 LNG cargoes, equivalent to about 2.7 billion cubic meters of natural gas, are affected from April to early September.
- The disruptions began in March following Iranian missile attacks that damaged two LNG-producing trains at Ras Laffan, Qatar's main export facility.
- The damage is estimated to cost $20 billion a year in lost revenue and take up to five years to repair.
- Edison has secured alternative supply for 14 of the affected cargoes and does not anticipate impacting end customers.
- Edison has a 25-year contract with QatarEnergy for an annual supply of 6.4 billion cubic meters of natural gas to Italy.