Shell, LNG suppliers declare force majeure on Qatari LNG contracts

(Bloomberg) — Liquefied natural gas suppliers, including Shell Plc, are declaring force majeure on customers across Asia due to the shutdown at the world’s largest export plant in Qatar, according to people with knowledge of the matter.

Oman trading house OQ has also declared force majeure to its customer in Bangladesh due to halted Qatari supply, a person familiar with the matter said, asking not to be named discussing private matters. 

It’s a sign that supply disruption is now extending beyond customers with direct contracts with Qatar — illustrating the importance of the country in the global gas market. 

“I’m sure they won’t be the last,” said Tim Partridge, head of trading and risk management at LG Energy Group. “An energy ecosystem in delicate balance is abruptly in flames with many parties, be they exporters or importers, heavily impacted.”

Shell has an equity partnership with QatarEnergy in the massive Ras Laffan LNG plant, the largest single plant in the world, which shut down last week following a drone attack on the facility. QatarEnergy declared force majeure on its LNG supply. 

Shell declined to comment. Bangladesh’s Rupantarita Prakritik Gas Co. Ltd. and OQ did not immediately respond for requests for comment.