Saad Sherida Al Kaabi, Minister of Energy and Qatar Energy, speaks at a press conference in Doha, June 22, 2026.
Karim Jaafar | AFP | Getty Images
The war damage to energy facilities in Qatar, one of the world’s largest producers of liquefied natural gas, suggests that market turmoil could last for months even if the Strait of Hormuz opens.
Italian power company Edison SpA, part of the French group EDF, announced that Qatar Energy has extended its force majeure notice and suspended four additional LNG cargoes scheduled for Italy’s Adriatic LNG terminal until early September.
Edison said in a statement Tuesday that the extension brings the total volume of cargo affected during the April to early September delivery period to 21 days, which equates to about 2.7 billion cubic meters of natural gas.
Qatar Energy declared force majeure on its LNG production in March when Iran launched a series of attacks on oil and gas facilities in the Gulf in response to attacks by the United States and Israel.
In March, an Iranian missile attack damaged two LNG production trains at Ras Laffan, the world’s largest LNG export facility, reducing Qatar’s annual production by 12.8 million tons, or about 17% of its LNG exports.
In the aftermath of months of hostilities, Qatar Energy’s annual supply of 6.4 billion cubic meters of contracted natural gas to Italy under a 25-year contract with Edison has been disrupted. Edison said it has replaced 14 of its 21 cargoes with alternative supplies and does not expect the shortfall to impact end customers.
Qatar’s major state-owned companies estimate that the damage caused by Ras Laffan will cost them $20 billion a year in lost revenue and that repairs will take up to five years. The company did not respond to CNBC’s request for comment.
Market participants warned that natural gas prices could rise above pre-war levels even as LNG and oil-laden tankers previously anchored around the Persian Gulf slowly resumed sailing under a 60-day cease-fire agreed between the United States and Iran.
“Some risk premium will remain as uncertainty surrounding the negotiations continues throughout the 60-day implementation period,” said Laura Page, an analyst at Kpler. He said Prompt’s fundamentals will remain relatively tight ahead of the summer peak season due to China’s rising LNG demand, Thailand’s active purchases and South Korea’s nuclear shutdown.
JKM’s August futures price, a benchmark price tracked by S&P Global that reflects LNG supplied to Northeast Asia, was running at $15.521 per million British thermal units as of June 24, compared to pre-war levels of $10.697 on February 27.
Reflecting lingering risks to global energy flows, at least two LNG ships affiliated with Qatar Energy reversed course near the Strait of Hormuz last week after Iranian forces warned of unauthorized shipping routes and attacked two ships passing through Omani waters, according to Kupler.
