Finance
Exclusive-Shell, TotalEnergies and others declare FM to their clients who take LNG from Qatar - sources say
Published by Global Banking & Finance Review®
Posted on March 11, 2026
2 min readLast updated: March 11, 2026
Quick Summary
Several clients of QatarEnergy—including Shell and TotalEnergies—have declared force majeure to downstream customers due to Qatar’s halt in LNG production and shipment amid regional military disruptions.
Exclusive-Shell, TotalEnergies and others declare FM to their clients who take LNG from Qatar - sources say
Major LNG Buyers Declare Force Majeure Amid Qatar Production Halt
By Marwa Rashad
Background on LNG Supply Disruptions
LONDON, March 11 - Several companies that buy liquefied natural gas (LNG) from QatarEnergy as portfolio players or offtakers — including Shell, TotalEnergies and some firms in Asia — have declared force majeure to customers they supply, three sources told Reuters on Wednesday.
Qatar's Production Halt and Force Majeure Declaration
Qatar, the world's second-largest LNG exporter, announced a production halt at its 77 million tons per annum (mtpa) facility last week and declared force majeure on LNG shipments.
Responses from Key Companies
Shell , the world's largest LNG trader, declined to comment. TotalEnergies did not immediately respond to Reuters request for comment.
Partnerships and Market Impact
Both companies 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 million tons per annum (mtpa) of Qatari LNG, while TotalEnergies takes 5.2 mtpa and sells them to their clients worldwide.
Future Outlook for LNG 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. The company declared force majeure on LNG shipments on Wednesday.
Details of FM Notices and Timeline
Sources told Reuters last week that the FM 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; Editing by Nina Chestney)
Key Takeaways
- •QatarEnergy suspended LNG production at its 77 mtpa Ras Laffan facility after drone and missile strikes on March 2, and declared force majeure on March 4 shortly thereafter. Markets reacted with sharp price spikes globally.
- •Major buyers and intermediaries, including Shell, TotalEnergies, and Asia-based firms, have themselves invoked force majeure to their clients in response to upstream disruptions.
- •The halt could erase the expected global LNG surplus in 2026 and may take weeks to months to restart, as highlighted by analysts and echoed by Qatar’s energy minister.
Frequently Asked Questions about Exclusive-Shell, TotalEnergies and others declare FM to their clients who take LNG from Qatar - sources say
1Why did Shell and TotalEnergies declare force majeure on Qatar LNG?
They declared force majeure due to a production halt at QatarEnergy's LNG facility, affecting their ability to supply LNG to clients.
2Which companies are affected by QatarEnergy’s LNG production halt?
Clients of Shell, TotalEnergies, and other companies in Asia receiving LNG from Qatar are affected.
3What is the annual capacity of the affected Qatari LNG facility?
The affected facility has a capacity of 77 million tons per annum (mtpa).
4Did Shell and TotalEnergies comment on the situation?
Shell declined to comment and TotalEnergies did not immediately respond to requests for comment.
5When was force majeure declared on Qatari LNG shipments?
Force majeure was declared last week, following the announcement of the production halt.