Shell declares force majeure to customers buying Qatari LNG - Reuters
Kyiv • UNN
Shell, the largest trader, is suspending sales of Qatari LNG due to plant shutdowns in Qatar. Supply shortages will begin to be felt by customers from April.
Shell, the world's largest liquefied natural gas (LNG) trader, has declared force majeure on LNG supplies it purchases from QatarEnergy and sells to its customers worldwide. This was reported by Reuters, citing three sources, writes UNN.
Details
Qatar, the world's second-largest LNG exporter, last week announced a suspension of production at its 77 million tonnes per year (mtpa) facility and declared force majeure on LNG supplies.
Other buyers of Qatari LNG, including TotalEnergies and some Asian companies, also received force majeure notices from Qatar and informed their customers that they would not sell them Qatari LNG as long as the facilities remained closed, two other sources said.
A source close to TotalEnergies said the French oil and gas company had not declared force majeure — a form of notice used to describe events beyond a company's control, such as natural disasters, and which typically exempts from contractual obligations without penalty.
Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the large-scale North Field expansion project, which is expected to increase capacity by 2027.
Analysts estimate that Shell receives about 6.8 mtpa of Qatari LNG, and TotalEnergies — 5.2 mtpa.
Qatari Energy Minister Saad al-Kaabi told the Financial Times last week that a return to normal supplies would take "weeks to months," even if the war ended today. QatarEnergy declared force majeure on LNG supplies on Wednesday.
Reuters sources said last week that force majeure notices to customers indicated that March LNG supplies would not be affected, and the impact would be felt starting in April.