QatarEnergy has extended force majeure to mid-August according to Italy's Edison

The Italian utility Edison announced on Monday that QatarEnergy had notified its largest 'European customer' of the cancellation of five more LNG shipments, and extended force majeure to mid-August.

Edison has a long-term agreement with QatarEnergy to supply 6.4 billion cubic metres of liquefied gas to Italy each year. This contract is affected by disruptions caused by the Iran War since April.

Edison reported that, after Monday's notification of force majeure, "a total of 17 LNG shipments scheduled to be delivered to the Adriatic LNG terminal in northern Italy" are affected. This represents a volume of 2.2 billion cubic meters of gas.

In April, the utility, which is a part of the French energy group EDF, said that it was working to replace the volumes, mostly via LNG from the United States.

It said that as of March 25, it had replaced nine of the 17 cargoes that QatarEnergy had cancelled, which amounted to?1 billion cubic meters of gas.

The?force majeure declaration by QatarEnergy had a negative impact on Edison's first-quarter profit. As a result of the Middle East conflict, the group has also reduced its 'full-year' guidance.

The Italian company confirmed on Monday that it does not expect any impact on its customers.

Two sources with knowledge of the situation told us in April that Italy is likely to begin receiving LNG in June from the Golden?Pass LNG plant in the?United States. This facility is a joint venture?between QatarEnergy?and Exxon Mobil. (Reporting and editing by Cristina Carlevaro, Cynthia Osterman and Francesca Landini)

(source: Reuters)