QatarEnergy invokes force majeure after Iranian attacks on its facilities halt liquefied natural gas production, impacting global energy supplies.

DOHA: Qatar’s state energy giant QatarEnergy has declared force majeure on its liquefied natural gas (LNG) shipments following Iranian attacks on its key production facilities.

The company invoked the legal clause, which protects it from penalties for failing to fulfil contracts, after halting all LNG and associated product production on Monday.

Qatar’s defence ministry stated that Iranian drones struck two primary production hubs at Ras Laffan Industrial City, 80 kilometres north of Doha, and in Mesaieed, 40 kilometres south of the capital.

As one of the world’s top LNG producers alongside the United States, Australia and Russia, the production stoppage has significant implications for global energy markets.

QatarEnergy further announced on Tuesday that it would also halt downstream production of various products including urea, polymers, methanol and aluminium.

The Gulf nation shares the world’s largest natural gas reservoir, the North Field, with neighbouring Iran.

QatarEnergy estimates its portion of this shared field holds approximately 10% of the world’s known natural gas reserves.

In recent years, Qatar has secured multiple long-term LNG supply agreements with major global firms including France’s Total, Britain’s Shell, India’s Petronet, China’s Sinopec and Italy’s Eni.

The force majeure declaration formally notifies all affected buyers that contractual deliveries cannot be met due to circumstances beyond the company’s control.

 The Sun Malaysia