Bangladesh will not receive LNG from Qatar until November
LNG tanker in the Strait of Hormuz. File photo. Reuters
Qatar's energy company QatarEnergy has extended the suspension of liquefied natural gas (LNG) supply to Bangladesh, as ship movement through the Strait of Hormuz remains halted. Pakistan's buyers have also been informed that LNG will not be supplied until November.
QatarEnergy has also informed Italy's energy company Edison that it will not be able to supply LNG until the beginning of December. Edison said six more LNG cargoes have been newly cancelled. With this, the total number of cargoes not received from Qatar stands at 35.
QatarEnergy first suspended supply in April due to the US-Iran war. Since then, the time has been extended several times. This time too, the suspension period was extended because the situation in the Strait of Hormuz has not returned to normal.
According to Reuters, by the end of August, Qatar's LNG exports had fallen by 96 percent. According to data analysis firm ICIS, from January to August of this year, Qatar exported only 18 LNG cargoes. In the same period last year, that number was 509.
Meanwhile, the winter season is about to begin. European countries are buying LNG from the market to increase gas reserves before winter. This may further increase competition with Asian buyers for limited supply. As a result, gas prices in the international market may also remain high.
Italy has said it is confident of meeting the gas reserve targets set by the European Union. However, several countries, including Germany, are trying to increase reserves quickly.
Edison said it has already arranged alternatives for 23 cargoes to make up for the shortfall in supply from Qatar. Most of these have been taken from suppliers in the United States.
Edison has a long-term contract with QatarEnergy to supply 6.4 billion cubic meters of gas per year to Italy. This amount is about 10 percent of Italy's total gas consumption.
