Energy and Petrochemical Companies Declare Force Majeure Amid Middle East Disruptions

Qatar Energy announced on Monday that liquefied natural gas (LNG) deliveries have been halted due to a drone attack on its Ras Laffan complex, leading to a force majeure declaration. According to Jin10, Ras Laffan is the world's largest LNG export hub, and the incident has caused European gas prices to surge by 60%, reaching over 56 euros per megawatt-hour, marking a three-year high. In Indonesia, Chandra Asri Pacific declared force majeure on Tuesday following disruptions in the Strait of Hormuz. The company, which operates Indonesia's largest integrated petrochemical complex, will adjust production loads at its facilities. The news led to a 2.5% drop in Chandra Asri Pacific's stock price, hitting its lowest level in nearly a year. India's largest LNG importer, Petronet LNG Ltd, issued a force majeure notice on Tuesday to its buyers, including Indian Gas Ltd, Indian Oil Corporation, and Bharat Petroleum Corporation, due to transportation disruptions in the Strait of Hormuz. Consequently, Petronet LNG Ltd's stock fell by 10% on Wednesday. South Korean petrochemical company Yeochun NCC Co announced on Wednesday that it has entered force majeure status due to severe raw material procurement issues caused by the Strait of Hormuz blockade. The company expects significant delays in the delivery of naphtha originally scheduled for March. Aluminium Bahrain, a major aluminum producer in the Middle East, declared force majeure on Wednesday due to shipping disruptions caused by the Strait of Hormuz blockade. Although production continues, the metal remains in Bahrain. This situation has led to a 5.1% increase in aluminum prices on the London Metal Exchange, reaching $3,418 per ton, the highest since April 2022.