QatarEnergy extends LNG suspension to Italy’s Edison, Reuters reports

The extension will affect three further LNG cargoes intended for Edison, as regional conflict continues to disrupt energy supplies and shipping.QatarEnergy has extended its suspension of liquefied natural gas (LNG) deliveries to Italian utility Edison until the end of December, Reuters reported on Tuesday.The extension of force majeure moves the deadline from early December and will affect three additional LNG cargoes intended for Edison, one of QatarEnergy’s largest customers in Europe.QatarEnergy first notified Edison of the cancellations in April, following trade disruptions and damage to its LNG facilities in Qatar caused by the U.S.-Iran war, which began in late February.QatarEnergy had also extended force majeure on LNG deliveries to other major buyers, including Pakistan and Bangladesh, earlier this year as regional insecurity disrupted shipping routes through the Strait of Hormuz.Speaking on the broader impact of the regional escalation, Qatar’s Minister of State for Energy Affairs and QatarEnergy President and CEO, Saad Sherida Al-Kaabi, previously noted that missile strikes on Ras Laffan had reduced the country’s LNG export capacity by at least 17 percent.Despite the suspension, Edison continues to hold a long-term contract with QatarEnergy for the supply of 6.4 billion cubic metres of natural gas annually to Italy.The agreement, which began in 2009 and has a total duration of 25 years, accounts for around 10% of Italy’s total natural gas consumption.