Shell declares force majeure on LNG contracts from Qatar

Shell, the largest LNG trader, declared force majeure on its LNG contracts from QatarEnergy following a production halt at a Qatari facility producing 77 million tonnes per annum (mtpa). Qatar, the world's second-largest LNG exporter, announced the halt and force majeure on shipments last week. Other buyers, including some Asian companies, also received force majeure notices from Qatar and informed their customers of supply disruptions. Omani trading house OQ declared force majeure to a customer in Bangladesh due to the halted Qatari supply. The event, occurring in March 2026, impacts companies with direct contracts with QatarEnergy and extends to those further down the supply chain. Both Shell and TotalEnergies have long-term partnerships with QatarEnergy.

A recent Iranian missile strike on a Qatari gas plant has triggered a surge in fertilizer prices across Asia, threatening the region's food supply. The attack, which occurred on March 1st and halted production at QatarEnergy's LNG facility, disrupted the production of ammonia, a key component in urea fertilizer. Consequently, urea prices in Southeast Asia have increased by over 40%, reaching levels not seen since the Russia-Ukraine war impacted global supplies in 2022. With the Gulf region responsible for nearly half of global urea exports, the disruption is expected to have a significant impact on agricultural yields and food costs, particularly in countries like Bangladesh that rely on imported fertilizers. The price increase is already affecting shipments scheduled for April and May.