QatarEnergy Extends LNG Force Majeure, Cuts Edison Supply Into July

QatarEnergy has extended force majeure on LNG deliveries to Edison, canceling additional cargoes and tightening supply as disruptions continue into July.

(Reuters) — QatarEnergy has notified its biggest Italian customer, Edison, that it would cancel two additional liquefied natural gas (LNG) cargoes, extending force majeure to early July, the Italian utility said on May 5.

Edison, a unit of French energy group EDF, said in a statement that QatarEnergy would not deliver the two cargoes, on top of the 10 that have been cancelled since the start of the U.S.-Israeli war on Iran.

Iranian attacks have knocked out 17% of Qatar's LNG export capacity, threatening supplies to Europe and Asia, QatarEnergy's CEO and state minister for energy affairs told Reuters in March.

Based on the information received so far, Edison now expects a reduction in future deliveries from QatarEnergy of around one third of the annual contracted volumes, before taking into account any potential mitigation actions, the utility said.

The Italian company has a long-term contract with QatarEnergy worth 6.4 billion cubic meters (Bcm) of gas per year, or 10% of Italy's total annual gas consumption.

"Edison confirms that it does not expect any impact on its end customers, thanks to the mitigation actions

undertaken and the ongoing portfolio management activities already in place," it said.

Eight LNG cargoes that were cancelled have been already replaced, corresponding to approximately 1 Bcm of gas, it added.

French utility EDF has pushed back any decision on the sale of a stake in Edison as the war in Iran has disrupted LNG supplies from Qatar that Edison imports, four people with knowledge of the matter told Reuters last week.