Shell and TotalEnergies declare force majeure on Qatari LNG supply contracts

Wednesday 11 March 2026 - 14:20

By: Dakir Madiha

Shell and TotalEnergies declare force majeure on Qatari LNG supply contracts

Shell, TotalEnergies, and several companies in Asia have declared force majeure on downstream contracts linked to Qatari liquefied natural gas deliveries, according to a Reuters report citing sources familiar with the matter. The move follows Qatar’s own force majeure declaration earlier in March after disruptions triggered by attacks on key energy infrastructure, intensifying pressure on global LNG markets already strained by regional conflict.

The cascade began after QatarEnergy halted LNG production at the Ras Laffan complex on March 2 following Iranian drone strikes targeting infrastructure in the country. The Qatari Ministry of Defense confirmed that drones struck a water reservoir at a power plant in the industrial city of Mesaieed and an energy facility at Ras Laffan operated by QatarEnergy. No casualties were reported, but the company suspended production and formally declared force majeure two days later.

Ras Laffan, the world’s largest LNG facility with a capacity of about 77 million tonnes per year, is partly owned by Shell in partnership with QatarEnergy. Bloomberg reported that Shell has already invoked force majeure on certain LNG contracts with Asian customers. Shell declined to comment publicly, while TotalEnergies did not immediately respond to requests for comment from Reuters.

The disruption has rapidly spread through the global supply chain. Qatar accounts for roughly 20 percent of worldwide LNG exports, all of which pass through the Strait of Hormuz, a strategic maritime corridor where shipping traffic has dropped sharply amid escalating military tensions. According to sources cited by Reuters, even if hostilities were to end immediately, Qatar would require at least a month to restore full production because liquefaction trains must be restarted gradually to avoid damaging equipment.

The shutdown has already driven significant volatility in energy markets. Asian LNG benchmark prices have climbed around 39 percent since the production halt. Buyers in Europe and Asia have rushed to secure alternative cargoes from the United States and Australia, though American export facilities are already operating near maximum capacity and most shipments are tied to long term contracts.

Energy analysts warn that a prolonged outage in Qatar could have deeper consequences for global gas markets than the disruption triggered in 2022 when Russia cut pipeline gas flows to Europe. Researchers cited by Reuters say Qatari LNG is difficult to replace due to its scale and central role in global supply chains. Consultancy Energy Intelligence estimates the interruption could remove between 3.3 million and 11.2 million tonnes of LNG supply in 2026 depending on how long production remains offline.

With LNG output still halted and maritime traffic through the Strait of Hormuz severely restricted, the force majeure declarations by major traders signal that contractual and supply chain disruptions from the crisis are likely to continue.