QatarEnergy has invoked force majeure on its liquefied natural gas (LNG) shipments after Iranian drone strikes targeted production facilities at Ras Laffan industrial city.
The declaration releases the state‑owned producer from contractual supply obligations after it suspended LNG output and related products, including fertiliser, earlier this week.
Iran has launched strikes against Gulf Arab states hosting American military installations as part of the escalating conflict involving the United States and Israel.
Force majeure clauses allow companies to suspend contractual commitments when circumstances beyond their control prevent them from meeting delivery obligations.
QatarEnergy is a major global supplier of energy | GETTY
QatarEnergy said it “values its relationships with all of its stakeholders and will continue to communicate the latest available information”.
Qatar accounts for around one fifth of global LNG exports, making the production halt a significant disruption to international gas markets.
The company delivered 80.97 million metric tonnes of LNG during 2025.
All Qatari LNG cargoes must transit the Strait of Hormuz, where shipping traffic has slowed sharply amid heightened security risks.
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The maritime corridor is a critical energy route linking Gulf producers to global markets.
Energy market participants have also reported rising war‑risk insurance premiums and higher shipping costs linked to the disruption.
Despite the production shutdown and shipping constraints, wholesale oil and gas prices have so far shown limited immediate reaction.
UK gas is trading at 124p per therm, while Brent crude sits at $80.79 a barrel.
Once liquefaction resumes, QatarEnergy would need around two weeks to return to full output, according to Reuters sources.
It comes after the company halted LNG production earlier this week, along with output of fertiliser and other related products, following drone strikes on its facilities.
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