QatarEnergy Extends LNG Delivery Suspension to Italy Until December

QatarEnergy has extended its suspension of liquefied natural gas (LNG) deliveries to Italy's Edison until the end of December, impacting an additional three cargoes. Edison, a unit of France's EDF, announced the extension on Tuesday, noting that the new deadline was communicated through Italy's energy markets manager, GME. This pushback affects supplies scheduled for delivery at the Adriatic LNG terminal in Italy.

Edison holds a long-term contract with QatarEnergy to receive 6.4 billion cubic meters of natural gas annually, which amounts to approximately 10% of Italy's total consumption. This contract, which began in 2009, is set to run for 25 years in total. The recent extension follows an earlier suspension declared by QatarEnergy on March 24, which initially affected customers in Italy, Belgium, South Korea, and China.

QatarEnergy's decision to extend the force majeure was prompted by damage to its facilities. Iranian attacks during the US-Israeli conflict with Iran resulted in the damage of two of Qatar's 14 LNG trains and one of its two gas-to-liquids facilities at Ras Laffan. The CEO of QatarEnergy has stated that repairs could take between three to five years, leading to a reduction of about 12.8 million tonnes of annual LNG production.

Despite the ongoing suspension, some Qatari supplies are resuming. Poland's Orlen is expected to receive its first QatarEnergy cargo since the suspension, with the tanker Al Kharsaah scheduled to arrive at the Swinoujscie terminal on November 14, according to shipping data and industry sources.