Edison will go without three more liquefied natural gas cargoes after QatarEnergy extended its force majeure declaration through the end of September. The move lifts the total to 24 cargoes, roughly 3 billion cubic meters of gas, and the Italian utility says it can still supply every customer. Edison’s first-quarter operating profit fell by half, primarily because of the declaration.
QatarEnergy informed Edison on Tuesday that it cannot deliver three additional liquefied natural gas cargoes, extending its force majeure declaration through the end of September, the Italian utility announced. The extension brings the total number of LNG cargoes under force majeure to 24 during this period, representing approximately 3 billion cubic meters of gas.
Yet Edison said it can source alternative gas supplies for all customers and meet its commercial obligations. As of Tuesday, the company had replaced 17 LNG cargoes at the Adriatic LNG terminal, totaling about 1.6 billion cubic meters of natural gas.
Separately, the utility maintains a long-term contract with QatarEnergy for annual deliveries of 6.4 billion cubic meters of natural gas to Italy. Edison, owned by French energy group EDF, has held that agreement since 2009, on a 25-year term.
Still, the declaration has already cost Edison: first-quarter operating profit fell by half, primarily because of the force majeure declared by QatarEnergy. The company reduced its full-year guidance, citing uncertainty related to the Middle East conflict.
Source: Investing.com
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