QatarEnergy has extended a force majeure on LNG deliveries until the end of December 2026, leaving buyers in Europe and Asia without contracted supply heading into the winter and pushing European gas prices to their highest since the 2022 energy crisis.
State-owned QatarEnergy has extended the force majeure on LNG deliveries to the end of the year, covering both European terminals and price-sensitive markets in South Asia. Italy's gas importer Edison said it had received a notice from QatarEnergy confirming the extension of the force majeure, in force since April 2026, until the end of December. QatarEnergy informed Edison it would not be able to deliver three further LNG cargoes at the Adriatic LNG terminal in Italy, Edison said.
The force majeure on deliveries to Pakistan and Bangladesh has also been extended until the end of the year, a source at Bangladesh's Petrobangla told Reuters.
"We are trying to secure additional spot cargoes to bridge the supply gap, but at a significant cost, driving our import bill sharply higher and putting considerable pressure on our finances," Petrobangla chairman Abdul Mannan said.
Pakistan will have to pay in excess of $1 billion to secure LNG supply for the winter months, as spot prices soar amid the disruption to Qatari term supply. The Pakistani government plans to import 10 cargoes from the spot market at double the price paid under long-term contracts with Qatar, while spot LNG prices in Asia have surged to four-year highs.
LNG flows through the Strait of Hormuz have not recovered in any meaningful way, even as Middle Eastern oil exports have, hiking European and Asian prices to their highest since 2022. At the Dutch Title Transfer Facility, the benchmark for European gas trading, the front-month price rose 1.5% at 8:30 a.m. Amsterdam time on Wednesday to $108.51 (97.53 euros) per megawatt-hour, its highest since the 2022 energy crisis, when Europe faced its first winter without most of Russia's pipeline gas.
Analysis
Why This Matters
- European and Asian buyers head into winter short of contracted Qatari supply, with the European benchmark price at its highest since the 2022 energy crisis.
- Price-sensitive importers in Pakistan and Bangladesh face sharply higher bills; Pakistan faces spot purchases at double its contract price, with a winter bill in excess of $1 billion.
- The extension signals that LNG flows through the Strait of Hormuz have not materially recovered, sustaining the supply shock.
Background
QatarEnergy is Qatar's state-owned energy company and one of the world's largest LNG suppliers, with long-term contracts that anchor gas supply for buyers across Europe and Asia. A force majeure is a contractual provision that releases a party from its obligations because of circumstances beyond its control; QatarEnergy's has been in force since April 2026 and now runs to the end of December. The disruption coincides with European and Asian prices returning to levels last seen during the 2022 energy crisis.
Key Perspectives
- Petrobangla (Bangladesh): Chairman Abdul Mannan said the company is trying to secure additional spot cargoes to bridge the supply gap, but at a significant cost, driving its import bill sharply higher and putting considerable pressure on its finances.
- Pakistan government: plans to import 10 LNG cargoes from the spot market at double the price of long-term Qatari contract supply, expecting a winter bill in excess of $1 billion.
- Edison (Italy): said it received a notice from QatarEnergy confirming the force majeure extension and was told three further cargoes would not be delivered at the Adriatic LNG terminal.
What to Watch
- Whether LNG flows through the Strait of Hormuz recover; the source says they have not, even as Middle Eastern oil exports have bounced back.
- European TTF prices, now at their highest since the 2022 crisis, and whether winter demand pushes them higher.
- Whether QatarEnergy lifts or extends the force majeure when it runs out at the end of December 2026.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedQatarEnergy extended the LNG force majeure to the end of 2026.Oilprice.com: “QatarEnergy has extended the force majeure on LNG deliveries to the end of the year”
- SupportedEuropean gas prices reached their highest level since 2022.Oilprice.com: “At $108.51 (97.53 euros) per megawatt-hour (MWh), the European gas price is now at its highest since the 2022 energy crisis”
- Partly supportedEuropean and Asian buyers face winter without contracted Qatari supply.Oilprice.com: “leaving Europe and Asia without certain term supply heading into the winter”
- SupportedPakistan's spot purchases could top $1 billion.Oilprice.com: “Pakistan will have to pay in excess of $1 billion to secure LNG supply for the winter months”
- Partly supportedThe force majeure covers European terminals and price-sensitive South Asian markets.Oilprice.com: “QatarEnergy has informed Edison that it would not be able to deliver three further LNG cargoes at the Adriatic LNG terminal in Italy”
- SupportedEdison said the force majeure, in force since April 2026, was extended until the end of the year.Oilprice.com: “Edison said it had received a notice from QatarEnergy confirming the extension of the force majeure on deliveries – in force since April 2026 – until the end of the year.”
- SupportedQatarEnergy told Edison it could not deliver three further LNG cargoes at Italy's Adriatic LNG terminal.Oilprice.com: “QatarEnergy has informed Edison that it would not be able to deliver three further LNG cargoes at the Adriatic LNG terminal in Italy”
- SupportedA Petrobangla source told Reuters that the force majeure on deliveries to Pakistan and Bangladesh was extended to the end of the year.Oilprice.com: “The force majeure on Qatari LNG deliveries to the price-sensitive markets in South Asia, Pakistan and Bangladesh, has also been extended until the end of the year, a source at Bangladesh’s Petrobangla told Reuters .”
- SupportedPetrobangla chairman Abdul Mannan said, “We are trying to secure additional spot cargoes to bridge the supply gap, but at a significant cost, driving our import bill sharply higher and putting considerable pressure on our finances,”Oilprice.com: ““We are trying to secure additional spot cargoes to bridge the supply gap, but at a significant cost, driving our import bill sharply higher and putting considerable pressure on our finances,” Petrobangla chairman Abdul Mannan told the publication.”
- SupportedPakistan plans to import 10 spot-market LNG cargoes at double the price under its long-term Qatar contracts.Oilprice.com: “the plans of the Pakistani government to import 10 LNG cargoes from the spot market, at double the price at which LNG is being imported from Qatar under long-term contracts.”
- SupportedAsian spot LNG prices have surged to four-year highs.Oilprice.com: “the spot LNG prices in Asia surging to four-year highs”
- SupportedThe front-month Dutch TTF price rose 1.5% at 8:30 a.m. Amsterdam time on Wednesday to $108.51 (97.53 euros) per megawatt-hour.Oilprice.com: “the front-month price at the Dutch Title Transfer Facility (TTF) , the benchmark for Europe’s gas trading, rose by 1.5% at 8:30 a.m. Amsterdam time on Wednesday. At $108.51 (97.53 euros) per megawatt-hour (MWh)”
