Qatar Declares 'Force Majeure'... LNG Contracts with Four Countries Including South Korea Temporarily Suspended
Implementation of Contracts with Italy, Belgium, and China Also Suspended
QatarEnergy, the state-owned energy company of Qatar, has declared force majeure on its long-term liquefied natural gas (LNG) supply contracts with major importers, including South Korea.
According to Yonhap News Agency on March 24 (local time), QatarEnergy announced in a statement that it would temporarily suspend the execution of long-term LNG supply contracts with South Korea, Italy, Belgium, and China.
The declaration of force majeure is due to the destruction of production facilities caused by missile attacks. After Israel attacked Iran's South Pars gas field, Iran retaliated by striking LNG production facilities located in Ras Laffan Industrial City, Qatar's key LNG production hub.
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As a result, on March 19, Saad Al-Kaabi, CEO of QatarEnergy, said in an interview with Reuters that 17% of Qatar’s LNG export capacity had been damaged, and it is expected to take three to five years to recover.
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