QatarEnergy declares force majeure after halting LNG production amid regional conflict

DOHA: Qatar’s state-owned energy giant QatarEnergy has declared force majeure on liquefied natural gas (LNG) supplies after halting production of LNG and related products, officials said, in a disruption linked to the wider Middle East conflict.

In a statement posted on the social media platform X, QatarEnergy said it informed affected buyers that it was invoking force majeure — a contractual provision that allows suspension of delivery obligations when extraordinary events beyond control make performance impossible.

The company said it values its relationships with stakeholders and will continue to update customers as the situation develops.

The move follows an earlier decision on March 2 to stop LNG and downstream product output in facilities at Ras Laffan Industrial City and Mesaieed Industrial City amid heightened security risks following regional attacks, including Iranian missile and drone strikes targeting energy installations.

Qatar is one of the world’s largest LNG exporters, accounting for about 20 per cent of global LNG supply, with most of its output destined for buyers in Asia, including China, Japan, India and South Korea.

The production halt has already triggered market reactions. Major LNG buyers such as India’s Petronet LNG Ltd have issued their own force majeure notices to related offtakers, citing rising maritime risks and the inability to safely transit tankers through the Strait of Hormuz. Shares of Petronet LNG fell sharply in response to the disruption.

Analysts warn that continued suspension of Qatari LNG output could deepen global energy market volatility, potentially prolonging supply constraints and pushing up prices as buyers seek alternative sources amid ongoing conflict-related disruptions.