The European energy market is on high alert as QatarEnergy extends its force majeure status through at least the end of September. The prolonged paralysis of tankers in the Strait of Hormuz is causing a cascade of cancellations in LNG deliveries, carving out a multi-billion cubic meter hole in the supply chain. The shocks are now directly impacting the profitability of energy groups across the Old Continent, with a characteristic example being Italian Edison, whose operating profits contracted by 50%.
LNG deliveries... on ice
According to reports in international news media, QatarEnergy extended force majeure for its European buyers through at least the end of September 2026, further confirming that energy disruption in the Strait of Hormuz has a prolonged impact. It is recalled that the company is one of the world's largest LNG exporters, and although Europe does not constitute its largest customer base, the impact here provides a glimpse into what Asia is undoubtedly experiencing. Nevertheless, certain European buyers will be significantly affected by the continuation of this status quo. Characteristically, it is noted that not a single LNG tanker has crossed Hormuz since July 16. Even if "shadow fleet" movements are occurring—which is doubtful for Qatar—their numbers are likely minimal.
Briefing at Edison
One of QatarEnergy's largest European clients, Italian Edison SpA, states that Qatar informed it that it will be unable to deliver three LNG cargoes under the latest delay. In total, 24 LNG cargoes belonging to the company have been affected during this force majeure period, representing roughly 3 billion cubic meters of natural gas shipments. It is emphasized that Edison SpA maintains a contract with QatarEnergy to supply 6.4 billion cubic meters of natural gas annually to Italy—a agreement active since 2009.
As a result of the force majeure, operating profits for Edison SpA for the first quarter were halved, primarily due to this development. This serves as just one example of the broader impact from ongoing traffic disruptions in the Strait of Hormuz. It is recalled that QatarEnergy also announced last week that it extended force majeure to several Asian customers, while simultaneously extending charter agreements for select LNG carriers through at least mid-October.
If nothing else, this indicates that a meaningful shift in the Middle East situation is unlikely for at least a few more months. It is underlined that Edison's Q1 operating profits were halved, primarily due to the negative effect of the force majeure declared by QatarEnergy. The group also slashed its full-year guidance as a consequence of the uncertainty surrounding the Middle East conflict.
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