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Korea Downplays Reported Qatar LNG Force Majeure as Prices Surge

Analysts foresee a prolonged LNG shortfall following damage at Qatar’s Ras Laffan.

Overview

  • QatarEnergy’s force majeure on long-term LNG contracts was reported by Reuters, while Seoul says no official notice has arrived and domestic supply remains steady.
  • QatarEnergy chief Saad al-Kaabi told Reuters that damage at Ras Laffan removed about 17% of Qatar’s export capacity and could constrain deliveries for up to five years.
  • Market trackers cut global LNG supply outlooks by roughly 35 million tons through 2029 and Asian spot prices have jumped about 143% since the war began.
  • South Korea has excluded Qatar cargoes from this year’s planning, is sourcing gas from other regions, and is weighing naphtha export curbs to protect key industries.
  • U.S. export plants are near capacity and an outage tied to Australia’s Barossa field has disrupted Darwin LNG, which limits short-term replacements for lost Middle East volumes.