Shell declares force majeure to clients who buy Qatari LNG
- Shell has long partnerships with QatarEnergy
- Qatar halted production at 77-MMtpy LNG facility
Shell, the world's largest liquefied natural gas trader, has declared force majeure on LNG cargoes it buys from QatarEnergy and sells to its clients worldwide, three sources told said on Wednesday.
Qatar, the world's second-largest exporter of LNG, announced a production halt at its 77-MMtpy facility last week and declared force majeure on LNG shipments.
Other Qatari LNG buyers, including TotalEnergies and some Asian companies, have received force majeure notices from Qatar and told customers they would not be selling them Qatari LNG as long as the facilities remain shut, two other sources said.
A person familiar with the matter said TotalEnergies has not declared force majeure, a notice used to describe events outside a company's control, such as a natural disaster, which usually releases it from contractual obligation without penalty.
Both Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the company's massive North Field expansion project which aims to boost capacity by 2027.
Analysts estimate Shell takes 6.8 MMtpy of Qatari LNG, while TotalEnergies takes 5.2 MMtpy.
Qatari Energy Minister Saad al-Kaabi told the Financial Times last week that it would take "weeks to months" to return to normal deliveries, even if the war ended today. QatarEnergy declared force majeure on LNG shipments on Wednesday.
Sources said last week that the force majeure notices sent to clients stated that LNG deliveries for March will not be affected, with the impact being felt as of April.
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