Oil and gas giant declares force majeure due to geopolitical tensions

March 6 ------ QatarEnergy has declared force majeure on liquefied natural gas (LNG) shipments after halting production at its main export facilities.

Force Majeure is a legal concept that refers to unforeseeable events that prevent someone from fulfilling a contract. The term comes from French, meaning “superior force.” It’s used in contracts to protect parties from liability when extraordinary events occur that are beyond their control.

The suspension comes amid rising tensions linked to the ongoing conflict involving Iran. Drone and missile attacks in the region have disrupted energy infrastructure and halted production at Qatar’s industrial hubs. "Further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy has declared Force Majeure to its affected buyers. QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information," said the company in its statement.

According to Reuters, shipping restrictions near the Strait of Hormuz have halted Qatar’s LNG exports, which has forced a pause in the liquefaction process that cools gas to –162°C.

Although QatarEnergy’s Ras Laffan plant has storage tanks of about 1.88 million cubic meters, at full production they would fill in four days. Restarting operations requires a carefully sequenced cooldown of the liquefaction trains to prevent thermal shock.

Source: safety4sea.com