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Qatar Energy will be unable to supply liquefied natural gas (LNG) to Bangladesh, Pakistan and several other Asian countries until November as the closure of the Strait of Hormuz continues to disrupt its supply routes, Reuters reported.
The Qatari energy company will also suspend LNG deliveries to Italian energy firm Edison until early December for the same reason.
Qatar Energy first declared force majeure on LNG supplies in April after the US-Iran war disrupted its export operations. The company has since extended the force majeure period several times.
Qatar Energy did not immediately respond to Reuters’ request for comment.
Qatar has been among the countries hardest hit economically by the conflict. Reuters estimates that the country’s LNG exports had fallen by 96% by the end of August. According to energy data analytics firm Kpler, Qatar exported only 18 LNG cargoes between January and August this year, compared with 509 during the same period last year.
The disruption comes ahead of the winter season, when gas demand typically rises in Europe as countries use more fuel for heating.
Europe’s reliance on Middle Eastern LNG has increased since the Russia-Ukraine war prompted European countries to reduce their dependence on Russian gas. The European Union has also moved to phase out Russian gas imports by the end of this year.
With LNG supplies already constrained by the disruption caused by the conflict, competition between European and Asian buyers could intensify as winter approaches, potentially keeping international gas prices elevated.
Italy has said it remains confident of meeting the European Union’s gas storage targets, although Germany and several other countries are seeking to accelerate the replenishment of their reserves.
Edison said on an Italian energy market platform that QatarEnergy would cancel another six LNG cargoes, bringing the total number of cargoes it has failed to receive from the Qatari supplier to 35.
The disruption is particularly significant for Bangladesh, which relies on imported LNG to meet gas shortages in power generation and industrial sectors. A prolonged interruption could force the country to seek supplies from alternative sources.
Analysts have warned that Bangladesh could face difficulties securing LNG even at higher prices if the global supply crunch deepens, as wealthier and more powerful buyers are likely to compete aggressively for available cargoes.