Shell Declares Force Majeure Amidst LNG Supply Halt from Qatar

Shell has announced force majeure on LNG deliveries due to QatarEnergy's production halt. Qatar is a major LNG exporter, with the disruption expected to impact deliveries from April. The situation affects major buyers, including TotalEnergies. Both firms have significant ties with QatarEnergy's expansion project.

Shell, a global leader in liquefied natural gas (LNG) trading, has declared force majeure on LNG cargoes sourced from QatarEnergy. This comes after Qatar, the world's second-largest LNG exporter, halted production at its 77 million tons per annum facility last week, affecting global deliveries.

While Shell declined to comment, other buyers like TotalEnergies have received similar force majeure notices from Qatar, stipulating a halt in sales until facilities resume operations. TotalEnergies, although affected, has not declared force majeure, as this notice usually pertains to uncontrollable events such as natural disasters, exempting firms from penalties.

Analysts highlight that Shell and TotalEnergies are significantly involved with QatarEnergy, with Shell taking 6.8 mtpa and TotalEnergies 5.2 mtpa of Qatari LNG. The Energy Minister of Qatar indicated that the situation could take weeks or months to resolve, with force majeure notices specifying no March disruptions, but issues starting April.