Qatar Extends Force Majeure on LNG Supply

State producer QatarEnergy extended force majeure on its liquefied natural gas supply through mid-June, according to people familiar with the matter, as the Strait of Hormuz remains almost entirely closed to tanker traffic.

QatarEnergy customers received the notice, said the people who asked not to be identified because they weren’t authorized to discuss the matter. QatarEnergy didn’t immediately respond to a request for comment.

Force majeure is declared when extraordinary situations prevent companies from performing on their commercial agreements. QatarEnergy has sent periodic notices on force majeures since the start of the Iran war in late February.

Global gas prices in Europe and Asia have surged since the conflict, with almost one fifth of LNG supplies choked off, including those from Qatar and the United Arab Emirates. Qatar’s Ras Laffan facility was damaged from Iranian missile strikes in March.