QatarEnergy has declared force majeure to several buyers after announcing a halt in the production of liquefied natural gas (LNG) and related products, according to a press release by the company.
Force majeure is a legal clause that allows a company to temporarily suspend or cancel its contractual obligations when extraordinary events beyond its control prevent it from fulfilling them. Such events can include wars, natural disasters, government actions, or major supply disruptions. In these situations, the company is not held liable for failing to deliver under the contract.
The company said the move follows its earlier decision to suspend output, a step that affects contracted deliveries to some customers. QatarEnergy said it values its relationships with all stakeholders and will continue to provide updates as more information becomes available regarding the situation and potential timelines for resuming production.
The announcement comes amid escalating tensions in the Middle East following the outbreak of conflict between the US, Israel, and Iran. Iranian strikes and security threats in the Gulf, including attacks on facilities near Qatar’s key gas hub at Ras Laffan and disruptions to shipping through the Strait of Hormuz, forced QatarEnergy to halt LNG production and declare force majeure on some deliveries.