DOHA (The Thursday Times) — QatarEnergy has told some of its Pakistani customers they will receive no liquefied natural gas from Qatar until the end of the year, as the Gulf supplier signed a 20-year deal to buy American LNG in a sign it expects the Strait of Hormuz to stay dangerous for years.
Clients in Pakistan were informed that force majeure notices had been extended to the end of December, a person with knowledge of the matter told Reuters. Italy’s Edison, one of Qatar’s biggest European customers, said the suspension would cost it three more cargoes. QatarEnergy halted production at its Ras Laffan complex in March after Iranian strikes, and the damage has knocked out about 17% of its export capacity.
The biggest buyer of US LNG
On Thursday, QatarEnergy agreed to buy LNG from Australian producer Woodside’s Louisiana export project for 20 years, with volumes rising to 3 million tonnes a year and deliveries expected from 2030. QatarEnergy said the deal makes it the largest buyer of US LNG.
“If you were just trying to fill a three- or four-year gap, you wouldn’t be signing 20-year contracts,” said Hersh Oberoi, global research director at Balfour Capital Group. “Qatar is clearly treating the Hormuz risk as something that is not going away.”
Pakistan’s winter gap
Pakistan depends on two long-term Qatari contracts for much of its imported gas and has been scrambling to buy spot cargoes ahead of winter. QatarEnergy has separately made a final offer to reprice those contracts at 11.96% of Brent for fewer cargoes, and Pakistan State Oil is seeking government approval to sign by November 3.
Gas prices in Europe have climbed above €95 per megawatt hour, close to their highest since December 2022, as Qatari supply stays offline and storage runs low.
