Natural Gas burning, Wikimedia Commons CC License
CALGARY — It is not only oil markets being rattled by the U.S. war against Iran. Global natural gas supplies are also facing disruptions as the conflict spreads across the Middle East.
Major energy companies including Shell plc and TotalEnergies have declared force majeure on liquefied natural gas cargoes linked to Qatar after the country halted production at a key LNG facility.
Qatar, the world’s second-largest exporter of LNG, suspended output at a plant with capacity of about 77 million tonnes per year and declared force majeure on shipments as regional fighting intensified. In response, companies that buy Qatari LNG and resell it to global customers notified clients they may be unable to fulfill contracts until production resumes.
Force majeure is a contractual clause used when extraordinary events such as war or transport disruptions prevent companies from meeting delivery obligations.
The developments come as global gas markets are already under pressure from the conflict, with benchmark natural gas futures trading just above US$3.00 per million British thermal units in recent sessions.
The turmoil also highlights the role of North American supply, including Canada’s western gas fields.
Alberta produces more than half of Canada’s natural gas, with the province holding an estimated 26.6 trillion cubic feet of conventional marketable reserves, according to the Alberta Energy Regulator.
Traders say prolonged disruption in Middle Eastern energy exports could increase demand for alternative sources of supply, including North American natural gas, as global buyers look for more stable producers like Canada.
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