Shell's LNG Turbulence: A Force Majeure Dilemma

Shell, the leading trader in liquefied natural gas (LNG), has declared force majeure on its LNG cargoes from QatarEnergy, a move impacting its global clientele. The declaration follows Qatar's production halt at its massive LNG facility, reported three sources to Reuters.

Qatar, holding the title as the world's second-largest LNG exporter, announced a cessation of operations at its 77 million tons per annum (mtpa) site and issued force majeure notices accordingly. While Shell opted not to comment, other involved parties like TotalEnergies and several Asian firms informed their customers about the sales interruption due to the shutdown.

According to a source close to TotalEnergies, the company has managed to avoid declaring force majeure amid ongoing disruptions. Analysts project resumption of normal LNG deliveries may span weeks to months, as stated by Qatari Energy Minister Saad al-Kaabi, keeping the industry on edge with anticipated impacts starting in April.