Finance
Exclusive-Shell declares force majeure to clients who buy qatari LNG, sources say
Published by Global Banking & Finance Review®
Posted on March 11, 2026
2 min readLast updated: March 11, 2026
Quick Summary
Shell has declared force majeure to clients on Qatari LNG cargoes after QatarEnergy halted production and issued its own force majeure, citing drone strikes and regional tensions. The disruption may last weeks to months, driven by the war’s impact on energy infrastructure and shipping.
Shell declares force majeure to clients who buy Qatari LNG, sources say
Shell and QatarEnergy LNG Force Majeure: Impact and Industry Response
(Corrects description of source in paragraph 5. Adds media descriptor)
By Marwa Rashad
Shell's Declaration of Force Majeure
LONDON, March 11 (Reuters) - Shell, the world's largest liquefied natural gas trader, has declared force majeure on LNG cargoes it buys from QatarEnergy and sells to its clients worldwide, three sources told Reuters on Wednesday.
Qatar's LNG Production Halt
Qatar, the world's second-largest exporter of LNG, announced a production halt at its 77 million tons per annum (mtpa) facility last week and declared force majeure on LNG shipments.
Shell declined to comment.
Industry-Wide Reactions and Notices
Other Buyers and Force Majeure Notices
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 shut, two other sources said.
TotalEnergies' Position
A person familiar with the matter said 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.
Long-Term Partnerships and Expansion Projects
Both Shell and TotalEnergies have long-term partnerships with QatarEnergy and are partners in the company's massive North Field expansion project which aims to boost capacity by 2027.
Analysts estimate Shell takes 6.8 mtpa of Qatari LNG, while TotalEnergies takes 5.2 mtpa.
Future Outlook and Delivery Impact
Timeline for Normal Deliveries
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.
Short-Term Impact on Deliveries
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.
(Reporting by Marwa Rashad; Additional reporting by America Hernandez; Editing by Nina Chestney and Alexander Smith)
Key Takeaways
- •Shell, the world’s largest LNG trader, has declared force majeure on Qatari LNG cargoes it sells to clients following QatarEnergy’s production halt and force majeure announcement (QatarEnergy cut output at its 77 mtpa facility) (investing.com).
- •The shutdown follows Iranian drone attacks on Ras Laffan and Mesaieed facilities on March 2, 2026, prompting QatarEnergy to halt LNG and related product output and declare force majeure to affected buyers (aljazeera.com).
- •Restarting normal deliveries is expected to take “weeks to months,” according to Qatari Energy Minister Saad al‑Kaabi, while Shell takes about 6.8 mtpa and TotalEnergies about 5.2 mtpa of Qatari LNG under long‑term agreements (investing.com).
References
Frequently Asked Questions about Exclusive-Shell declares force majeure to clients who buy Qatari LNG, sources say
1Why did Shell declare force majeure on Qatari LNG shipments?
Shell declared force majeure due to a production halt at QatarEnergy's LNG facility, suspending its ability to deliver on LNG supply contracts.
2Which companies are affected by the Qatari LNG supply halt?
Shell and other buyers such as TotalEnergies and some Asian companies are affected, with clients worldwide receiving force majeure notices.
3How long could the disruption in Qatari LNG exports last?
According to Qatar's Energy Minister, it could take ‘weeks to months’ to return to normal deliveries, depending on conditions.
4Has TotalEnergies also declared force majeure on Qatari LNG shipments?
No, a source close to TotalEnergies stated that the company has not declared force majeure, although it has received notices from Qatar.
5When will the impact on LNG deliveries start?
Force majeure notices indicate that deliveries for March will not be affected, with impacts expected from April onwards.
