Wednesday, March 11, 2026

Shell declares force majeure on LNG contracts from Qatar

(Al Jazeera Media Network) Shell, the world’s largest liquefied natural gas (LNG) trader, has declared force majeure on LNG cargoes it buys from QatarEnergy and sells to its clients worldwide, the Reuters news agency reports, quoting three unnamed sources.

Qatar, the world’s second largest exporter of LNG, announced last week a production halt at a facility that produces 77 million tonnes per annum (mtpa) and declared force majeure on LNG shipments.

Shell declined to comment on Wednesday.

Other Qatari LNG buyers, including TotalEnergies and some Asian companies, have received force majeure notices from Qatar and told customers they would not be selling them Qatari LNG as long as the facilities remain closed, two other sources said.

Omani trading house OQ has also declared force majeure to its customer in Bangladesh due to halted Qatari supply, Bloomberg News reported on Wednesday, saying such declarations are a sign that supply disruptions are extending beyond companies that have a direct contract with QatarEnergy.

A person familiar with the matter told Reuters that TotalEnergies has not declared force majeure, a notice used to describe events outside a company’s control, such as a natural disaster, which usually releases it from contractual obligation without penalty.

Both Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the company’s enormous North Field expansion project, which aims to boost production capacity by 2027.

Analysts estimated Shell takes 6.8 mtpa of Qatari LNG while TotalEnergies takes 5.2 mtpa.

Qatari Energy Minister Saad al-Kaabi told the Financial Times last week that it would take “weeks to months” to return to normal deliveries, even if the war ended today. QatarEnergy declared force majeure on LNG shipments on Wednesday.

Sources told Reuters last week that the force majeure notices sent to clients stated that LNG deliveries for March will not be affected with the impact being felt as of April.

 

https://www.aljazeera.com/economy/2026/3/11/shell-declares-force-majeure-on-lng-contracts-from-qatar

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