QatarEnergy to Halt LNG Deliveries to Italy's Edison Until December

QatarEnergy will be unable to deliver liquefied natural gas cargoes to Edison, one of its largest European customers, until the beginning of December, the Italian utility said on Monday.

Shipments from Qatar to Edison have been suspended since April under a force majeure notification triggered by disruptions linked to the US-Iran war. The conflict has made Qatar one of its biggest economic casualties, with its LNG exports slashed by 96%, according to calculations made at the end of August.

While neighbouring Gulf exporters have managed to ship oil covertly out of the Strait of Hormuz, Qatar had exported just 18 LNG cargoes by the end of August, down from 509 in the same period last year, data from intelligence firm ICIS showed.

In a message posted on an Italian energy markets platform, Edison said QatarEnergy would cancel a further six LNG cargoes, bringing the total number of undelivered shipments to 35. The Italian subsidiary of France's EDF has so far replaced 23 cargoes, turning mainly to US suppliers to cover the shortfall from the Gulf.

Edison holds a long-term contract with QatarEnergy for the supply of 6.4 billion cubic metres of natural gas per year to Italy, equivalent to around 10% of the country's total consumption. The agreement has been in force since 2009 and runs for a total of 25 years.

With the thermal winter only days away, European countries will need to look elsewhere to fill their gas storages ahead of the coldest months. While Italy is confident it can meet the European Union's target for its gas buffer, several countries including Germany are rushing to fill their reserves.