Edison warns that QatarEnergy may extend force majeure past mid-June

Italian energy firm Edison is cautioning that QatarEnergy may need to prolong its force majeure on gas deliveries beyond its earlier set timeline of mid-June, Reuters reported on April 15.

During a media briefing, the Italian importer’s CEO Nicola Monti stated that the company is filling the supply gap with US LNG, purchasing seven cargoes from America after the company had 10 cargoes cancelled by the Gulf company that were slated to be delivered between April and mid-June.

Edison possesses a long-term agreement with QatarEnergy for the supply of 6.4 bn cubic metres of LNG per year, which is roughly 10% of Italy's total annual LNG consumption. The 10 cancelled cargoes are equivalent to around 1.4bn cubic metres of gas.

Nevertheless, Edison reaffirmed that deliveries to the company’s final customers in Italy are not in jeopardy.

“I think the market at the moment, while tight, offers sufficient flexibility options to allow us to continue getting supplies from other areas,” Monti stated.

Edison is expected to begin receiving cargoes in June from Golden Pass LNG, which is located in Texas and a joint venture between ExxonMobil and QatarEnergy. The cargoes will be shipped to Italy’s Adriatic LNG terminal situated close to Porto Levante in northeastern Italy.

Italy’s state-controlled Eni also has a 27-year sale and purchase agreement (SPA) to begin deliveries in 2026 from QatarEnergy for up to 1mn tpy of the super-chilled fuel. 

Edison also believes that the startup of Venture Global’s huge Plaquemines LNG facility will also ensure that ample supply options are available for the Italian giant.

In March Edison came to a settlement with Venture Global on cargo deliveries from its other plant at Calcasieu Pass. The settlement includes an agreement for the delivery of additional cargoes to Edison beyond the number originally agreed to in its long-term contract as a foundation customer, which will help to plug the supply gap.