Qatar Energy Extends LNG Supply Suspension to Italy by 29 Cargoes Through November

en.Wedoany.com Reported - On August 28, Italian energy company Edison received a new force majeure notice from Qatar Energy. Qatar Energy was unable to deliver five cargoes of liquefied natural gas originally scheduled to arrive at Italy's Adriatic LNG receiving terminal, extending the overall supply suspension period from early April to early November.

From April to early November, the cumulative number of LNG cargoes covered by force majeure increased to 29, totaling approximately 3.8 billion cubic meters of natural gas. Edison and Qatar Energy have a long-term contract for an annual supply of 6.4 billion cubic meters, which has been in effect since 2009 for a term of 25 years, accounting for approximately 10% of Italy's annual natural gas consumption.

Qatar Energy notified Edison in March that 10 LNG cargoes scheduled from April to mid-June could not be delivered; in early May, two more cargoes were canceled, extending the suspension period to early July; subsequently, the affected cargoes increased to 17, totaling approximately 2.2 billion cubic meters. On July 28, Qatar Energy added three more suspended cargoes, bringing the cumulative number to 24, approximately 3 billion cubic meters, with the suspension period extended to the end of September. With the addition of five new cargoes this time, the cumulative affected volume increased by approximately 800 million cubic meters.

As of August 28, Edison had sourced 21 replacement cargoes through the Adriatic LNG receiving terminal, totaling approximately 2 billion cubic meters of natural gas; as of July 28, the replacement volume stood at 17 cargoes, approximately 1.6 billion cubic meters. Edison stated that it will continue to procure natural gas from other sources and fulfill its existing customer supply contracts.

Edison imports approximately 14 billion cubic meters of natural gas into Italy annually, of which the Qatar contract volume is 6.4 billion cubic meters, Libya accounts for 4.4 billion cubic meters, Algeria and Azerbaijan each account for 1 billion cubic meters, and the U.S. long-term supply contract volume is 1.4 billion cubic meters. Its natural gas import scale accounts for approximately 23% of Italy's national demand.

Qatar's long-term contract cargoes are unloaded and regasified at the Adriatic LNG receiving terminal. This offshore terminal is located in the northern Adriatic Sea off Italy, with a maximum approved regasification capacity of 9.6 billion cubic meters per year, capable of meeting approximately 14% of Italy's natural gas consumption demand. Qatar Energy previously linked the supply suspension notices to transportation and production disruptions caused by ongoing hostilities in the Strait of Hormuz.