QatarEnergy, the state-owned petroleum company of Qatar, announced that it is declaring force majeure and canceling contracts to deliver liquefied natural gas (LNG) to customers worldwide after a series of attacks by Iran damaged its energy infrastructure.
The declaration followed what the company described as “successive waves of Iranian attacks” targeting its LNG facilities. Invoking force majeure — a legal clause used when events outside a company’s control prevent it from fulfilling contractual obligations — allows QatarEnergy to cancel its delivery commitments without facing financial penalties or breach-of-contract lawsuits.
Production disruptions began earlier in the week after Iranian drones struck two major energy hubs in the cities of Ras Laffan and Mesaieed. Following the attacks, Qatar halted LNG production on Monday and later announced it would also stop manufacturing downstream products including urea, polymers, methanol, and aluminum.
Qatar is one of the world’s most significant LNG suppliers, producing about 77 million tonnes annually — roughly 20 percent of the global supply. Many of its largest customers are in Asia, with countries such as India relying heavily on Qatari shipments for energy imports.
The disruption is compounded by geographic challenges. Qatar’s LNG exports must travel through the Strait of Hormuz, a strategic waterway that Iran’s Islamic Revolutionary Guard Corps has declared closed to shipping, further complicating the country’s ability to export energy products.
QatarEnergy officials said LNG production cannot be restarted for at least two weeks, and it will likely take an additional two weeks after that before exports return to normal levels.
Energy analysts have warned the shutdown could have major consequences for global gas markets if it continues. Saul Kavonic, head of energy research at MST Marquee, said the loss of Qatari supply could create a shock larger than the global gas disruption seen in 2022 when Russian pipeline gas flows to Europe were cut.
Qatar’s government has also rejected Iranian claims that the strikes were accidental. Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani told Iranian Foreign Minister Abbas Araghchi that there was “evidence on the ground” contradicting those assertions.
Al-Thani condemned the attacks as a “flagrant violation” of Qatar’s sovereignty and said he saw no sign of a “genuine desire for de-escalation or resolution” from Iran. He also warned that the attacks “will not go unanswered.”
READ NEXT: Will US Troops Enter Iran? Hegseth Leaves Door Open
Sponsored
John Kennedy here. The last fundraising deadline passed — and we came up short. Now the woke crowd is celebrating, saying “Kennedy’s finished.” Let’s prove them wrong. Chip in $25, $50, or whatever you can to close the gap and keep fighting.
