Following a drone attack on its Ras Laffan facility, QatarEnergy has suspended liquefied natural gas (LNG) production and declared force majeure on shipments. This disruption has caused a near-total halt in supplies from Qatar, a nation that is the world's second-largest LNG producer with a nameplate capacity of 77 million tonnes per annum (mtpa), representing about 20% of global output.

Impact on Major Buyers and Global Market

Major LNG portfolio players that source volumes from Qatar have been affected. Shell, the world's largest LNG player, has declared force majeure on the cargoes it purchases from QatarEnergy. Similarly, other buyers including TotalEnergies and some Asian companies have received force majeure notices and have informed their customers they cannot supply Qatari LNG while production is offline. Shell and TotalEnergies are long-term partners with QatarEnergy and co-venturers in its North Field expansion project, which aims to significantly increase liquefaction capacity by 2027. Analysts estimate Shell takes 6.8 mtpa of Qatari LNG and TotalEnergies takes 5.2 mtpa for their global clients.

Downstream Effects on Specific Contracts

The supply disruption has triggered a chain reaction affecting other contracts. Omani trading house OQ Trading (OQT) has declared force majeure until 8 April on a specific contract with Bangladesh’s Petrobangla due to the suspended Qatari supplies. Petrobangla had already received force majeure notices from QatarEnergy and Excelerate Energy. The chairman stated the company is now seeking alternatives from the spot market to cover the shortfall. Collectively, these three force majeure notices threaten eight LNG cargoes that Bangladesh was scheduled to receive in April—six under long-term deals and two on short-term arrangements.