Qatar Delays LNG Deliveries to Edison Until December, Affecting Europe’s Gas Supply
QatarEnergy’s LNG Supply Disruption and Its Impact on Europe
Suspension of Gas Shipments to Edison
MILAN, Sept 28 (Reuters) - QatarEnergy will not be able to deliver liquefied natural gas cargoes to Edison, one of its biggest customers in Europe, until the beginning of December, the Italian utility said on Monday.
Gas shipments from Qatar to Edison have been suspended since April under a force majeure notification triggered by disruptions caused by the US-Iran war.
Economic Consequences for Qatar
Qatar is among the conflict's biggest economic casualties with its liquefied natural gas exports slashed by 96%, Reuters calculated at the end of August.
While neighbouring Gulf exporters have managed to ship oil secretly out of the Strait of Hormuz, Qatar has exported just 18 LNG cargoes to end-August, down from 509 in the same period last year, according to data intelligence firm ICIS.
European Gas Storage and Winter Preparations
Winter Season Starting Soon in Europe
WINTER SEASON STARTING SOON IN EUROPE
With the thermal winter starting in few days, Europeans will have to look somewhere else to fill their gas storages to prepare for the coldest months of the year.
Italy and Germany’s Response
While Italy is confident it would meet the European Union's target for its gas buffer, several countries including Germany are rushing to fill their storages.
Replacement of Qatari LNG Shipments
In a message on an Italian energy markets platform, Edison said that QatarEnergy would cancel further six LNG cargoes, taking the total undelivered shipments to 35.
The Italian subsidiary of French EDF has replaced 23 cargoes so far, turning mainly to US suppliers to make up for missing deliveries from the Gulf.
Long-Term Contract Details
Edison holds a long-term contract with QatarEnergy for the supply of 6.4 billion cubic metres of natural gas per year to Italy, around 10% of the country's total consumption.
The contract, which has been in force since 2009, has a total duration of 25 years.
(Reporting by Francesca Landini, editing by Giulia Segreti and Louise Heavens)