QatarEnergy invokes force majeure on Iran strikes, choking LNG to Europe and Asia

QatarEnergy has declared force majeure on some long-term liquefied natural gas supply contracts, affecting customers in Europe and Asia and further crimping global supply. 

The force majeure, which allows a party to get out of fulfilling its obligations during extreme or uncontrollable circumstances, would apply to customers in Italy, Belgium, South Korea, and China, Al Jazeera reported. 

Iran has attacked the facilities of QatarEnergy, Qatar’s state-owned energy giant. That has caused the company to halt production and led to supply shortages and rising LNG prices. 

QatarEnergy said its LNG facilities at Ras Laffan Industrial City were struck by Iranian missiles last week, resulting in “extensive further damage.” The company warned that damage to the facilities disrupted nearly 17% of its export capacity, resulting in an estimated $20 billion in lost annual revenue.

It added that it would take up to five years to repair damages, compelling it to declare force