QatarEnergy extends suspension of gas deliveries to Edison through end-December, adds 3 affected cargoes
Key Facts
QatarEnergy has extended its suspension of liquefied natural gas deliveries to Italy’s Edison through the end of December, after the previously expected date for resuming deliveries in early December, the Italian company said. Reuters reported that the extension will affect 3 additional cargoes allocated to Edison, which the agency described as one of QatarEnergy’s largest customers in Europe. The company said in September that the suspension would continue into early December; the latest update pushes the date to the end of the month. That means QatarEnergy cargoes allocated to the Italian utility will remain disrupted during the additional period. Reuters did not specify the total volume of the three cargoes in cubic meters.
QatarEnergy began notifying Edison in April that it was canceling gas deliveries, following trade disruptions and damage to LNG facilities in Qatar during the U.S.-Israeli war on Iran, which began in late February, Reuters reported. In its first notice, Edison said 5 cargoes were expected to be affected in April, while March deliveries were not affected by the notice. The successive notices show that the suspension’s impact extended from cargoes scheduled for delivery in April to additional cargoes in subsequent months. In the latest extension, 3 more cargoes were added to those affected. Reuters did not attribute the extension itself to operational or logistical constraints; it linked the suspension’s background to trade disruption and damage to the facilities.
QatarEnergy’s long-term supply contract with Edison provides 6.4 billion cubic meters of gas a year to Italy, according to the company, representing about 10% of the country’s total consumption, Reuters reported. The contract took effect in 2009 and has a total term of 25 years. This volume puts the continued suspension in the context of Italy’s reliance on contracted supply and makes it significant for Edison’s portfolio. Chief Executive Nicola Monti said Qatari gas accounted for about 40% of the group’s portfolio. Since April, the company has worked to replace Qatari supplies, relying mainly on purchases of U.S. LNG on the spot market, Reuters reported, citing Monti.
Edison said replacement cargoes at the Adriatic LNG terminal totaled 23 through September 28, 2026, equivalent to about 2.3 billion cubic meters of natural gas. The company said it was able to provide alternative gas to its customers and meet its commercial commitments. This figure is the latest published tally in Edison’s statement of the volumes replaced, while the new extension adds 3 affected cargoes to the replacement effort. The company said in its first notice that March deliveries would not be affected, before notices began covering cargoes expected in April. The reported replacement tally is as of September 28 and does not include a later update to the volumes.
Monti told Reuters that Edison currently had no clear view of when supplies would resume, adding: "We hope deliveries will resume at the beginning of next year, but we do not have a clear view at this stage." That makes the beginning of next year the date at which the company hopes cargoes will return, without confirming that deliveries will resume then. In its notice dated September 28, Edison said its contract with QatarEnergy had been in place since 2009 and had a total term of 25 years. The latest update is that delivery suspensions will continue through the end of December, beyond the previous date that pointed to early in the month.