Qatar may extend its force majeure on gas supplies beyond mid-June, Italian importer Edison said, while predicting the gap will be plugged by US supply instead of Russian gas.
Speaking in a media
briefing, Edison CEO Nicola Monti and its head of gas portfolio management
Fabio Dubini said the Italian group bought seven cargoes of liquefied natural
gas from the US after 10 were cancelled by QatarEnergy between April and
mid-June due to the Middle East war.
Edison has a long‑term
contract with QatarEnergy to receive 6.4 billion cubic metres of LNG per year,
around 10 per cent of Italy's annual consumption, reported Reuters.
The utility, Italy's
second-biggest gas importer, last month received notification from its Gulf
supplier that it would not deliver 10 cargoes - equal to 1.4 billion cubic
metres of gas - from April to mid-June.
Attacks
by Iran knocked out 17 per cent of QatarEnergy's LNG export capacity
last month, according to its CEO.
QatarEnergy could not
be immediately reached outside normal business hours.
The deliveries to
Edison's final customers in Italy are not at risk, Edison said, even if
Dubini said it was reasonable to expect an extension of the disruption of
QatarEnergy's supply.
"I think the
market at the moment, while tight, offers sufficient flexibility options to
allow us to continue getting supplies from other areas," Monti said, when
asked whether Europe should reconsider its planned ban on
Russian LNG imports, as Italian energy group Eni has said.
Monti cited the
startup this year of two US LNG plants — Venture Global's Plaquemines and
Golden Pass, which is partly owned by QatarEnergy and Exxon Mobil —
as a reason for confidence in supply. Other plants are also under construction,
he said.
"Over the next 18
months, the market will return to being structurally balanced,"
Monti said.
A previously expected
LNG supply glut around 2027 to 2028 is likely to shift to 2029 to 2030 due to
the temporary shortfall of gas from the Middle East, Monti said.