Several major energy traders have begun declaring force majeure to their own customers after Qatar suspended LNG production following drone strikes at facilities at Ras Laffan Industrial City and Mesaieed Industrial City.

Shell, the world’s largest liquefied natural gas trader, has declared force majeure on LNG cargoes from Qatar, three sources toldReuterson Wednesday. This came after QatarEnergy, the world’s second-largest LNG exporter, halted production at its giant complex.

Other Qatari LNG buyers, ​including TotalEnergies and some Asian companies, have received force majeure notices from ​Qatar and told customers they would not be selling them Qatari LNG as long as the facilities remain shut, according to the report.

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However, a source close to the French oil and gas company TotalEnergies toldReutersthat it is yet to declare force majeure on exports. Both Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the company’s massive North Field expansion project which aims to boost capacity by 2027.

Shell and TotalEnergies are among the largest marketers of Qatari LNG worldwide. Analysts estimate Shell lifts about 6.8 million tons per annum of LNG from Qatar, while TotalEnergies takes roughly 5.2 million tons per year.

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QatarEnergy declared force majeure on LNG shipments on Wednesday, and several energy traders have warned that contractual deliveries may be disrupted after production was impacted due to Iran’s strikes on Gulf countries.

Shipping broadly has stopped in the strategic Strait of Hormuz, the narrow mouth of the Persian Gulf through which 20% of all oil and natural gas traded passes, and up to 30% of world fertiliser exports. Other producers like Saudi Aramco are affected, disrupting a key source of energy for Asia, particularly China.

ALSO READ:Iran War: From Asia To Europe, How Are Nations Coping With Rising Oil & LNG Prices?

Source: World News in news18.com, World Latest News, World News