QatarEnergy Declares Force Majeure on LNG Contracts

(MENAFN) QatarEnergy has declared force majeure on several liquefied natural gas (LNG) supply contracts with four countries after Iranian missile strikes damaged key energy infrastructure, according to reports.

The measure affects agreements with China, Italy, Belgium, and South Korea, as stated in a company announcement cited by regional media.

Force majeure is a contractual provision that allows a party to temporarily suspend obligations—such as delivery commitments—without penalties when extraordinary events beyond its control disrupt operations.

The strikes reportedly targeted the Ras Laffan industrial complex on March 18 and 19, resulting in significant damage to parts of the facility, including LNG processing units and a gas-to-liquids installation. QatarEnergy is currently assessing the extent of the damage and the timeline required for repairs.

Company officials indicated that the incidents reduced LNG export capacity by approximately 17%, with estimates suggesting substantial annual revenue losses. Initial assessments also suggest that full restoration of operations could take several years, prompting the company to invoke a prolonged force majeure clause.

The affected infrastructure includes major production lines with a combined capacity of over 12 million tons per year, representing a significant share of Qatar’s LNG output.

Earlier notifications to customers had already signaled potential disruptions due to ongoing regional instability linked to the wider conflict.

The developments come amid continued escalation in the region following military exchanges involving the United States, Israel, and Iran since late February. Iran has responded with drone and missile attacks targeting Israel and other regional locations hosting US assets, contributing to broader disruptions in energy markets, infrastructure, and international logistics.

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