‘Force majeure’ in LNG contracts: Why QatarEnergy is using it after Ras Laffan, Mesaieed attacks

State-owned QatarEnergy halted LNG production after Iranian drone attacks on Ras Laffan and Mesaieed and declared force majeure on shipments to affected buyers.

• QatarEnergy stops LNG production after Iranian drone attacks
• Force majeure declared on LNG shipments due to halted production
• Qatar-listed firms start shutting down energy and industrial operations

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QatarEnergy has declared force majeure on liquefied natural gas (LNG) shipments to affected buyers after halting LNG production following Iranian drone attacks on key energy facilities in the country.

The state-owned energy company said the declaration followed its earlier decision to stop LNG output and associated downstream products after its operational complexes were targeted.

“QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the company said in an official statement.

The declaration formally notifies buyers that QatarEnergy may be unable to meet supply commitments due to circumstances outside its control.

Iranian strikes hit key industrial hubs

QatarEnergy halted LNG production after Iranian drone attacks targeted facilities in Ras Laffan Industrial City and Mesaieed, two of Qatar’s most important industrial and export hubs for energy products.

Qatar’s Ministry of Defence confirmed that Iranian drones struck a water tank in Mesaieed and a QatarEnergy facility in Ras Laffan Industrial City on Monday. Authorities said no casualties were reported.

The attacks occurred amid escalating military tensions across West Asia following the ongoing conflict involving Iran, the United States and Israel.

Production of downstream products also halted

QatarEnergy announced on Tuesday that it would suspend the production of several downstream products in Qatar.

The affected products include urea, polymers, methanol, aluminium and other petrochemical outputs linked to the country’s industrial production chain.

The halt has triggered operational responses among companies linked to QatarEnergy’s industrial network.

Qatar-listed firms begin operational shutdowns

Following the production halt, several companies listed on the Qatar Stock Exchange announced steps to suspend or reduce operations.

Messaied Petrochemical Holding Company said its subsidiaries would stop producing certain products.

Qatar Aluminium Manufacturing Company, which holds a 50 percent stake in the aluminium joint venture Qatalum, said the smelter would begin a phased shutdown.

The shutdown process at the Qatalum facility began on Wednesday and is expected to be completed by the end of March, according to a statement from joint venture partner Hydro.

Hydro also declared force majeure to its buyers linked to the Qatalum operations.

Gulf International Services said its subsidiaries would suspend selected energy-related operations and services, while Industries Qatar said it would halt or scale back production of some products.

The companies said further details would be disclosed as additional information becomes available.

What force majeure means in energy contracts

In commercial contracts, force majeure refers to extraordinary circumstances beyond a party’s control that prevent it from fulfilling contractual obligations.

Events typically cited under such provisions include war, natural disasters or government actions.

When invoked, the clause usually allows suppliers to suspend deliveries without penalties for non-performance, depending on contractual terms.

By declaring force majeure, QatarEnergy has formally informed buyers that the current security situation could disrupt supply commitments.

Energy markets watching developments

Qatar is one of the world’s largest exporters of liquefied natural gas, making any production disruption closely watched by global energy markets.

The halt in LNG output and associated products comes as geopolitical tensions in West Asia continue to intensify, raising concerns about broader energy supply disruptions across the region.

QatarEnergy said it would continue to update stakeholders as more information becomes available.