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“The notice concerns an additional 2 LNG cargoes scheduled for delivery to Italy up to early July, on top of the 10 LNG cargoes already covered by the previous communications,” Edison said in a statement.
Moreover, Edison confirmed that it does not expect any impact on its end customers, thanks to the mitigation actions undertaken and the ongoing portfolio management activities already in place.
The company reported that, to date, 8 LNG cargoes have already been replaced, corresponding to approximately 1 billion cubic meters of gas.
Edison has a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of gas per year to Italy.
The contract, which started in 2009, has a total duration of 25 years.
Edison noted that the last deliveries from Qatar date back to the end of March 2026.
In the first quarter of the year, Edison received a total of 1.6 billion cubic meters of LNG from Qatar.
In March, QatarEnergy announced that it expects the damage to its Ras Laffan complex caused by missile strikes to cost about $20 billion a year in lost revenue and to take up to five years to repair, impacting supply to markets in Europe and Asia.
The firm said that it will be compelled to declare force majeure for up to five years on some long-term LNG contracts.
QatarEnergy stopped producing LNG at its giant Ras Laffan complex on March 2 due to military attacks on its operating facilities.
The LNG producer declared force majeure to its affected LNG buyers on March 4.
Force majeure impact
Looking forward, Edison remains in constant contact with QatarEnergy, with whom it has a “solid and trusted partnership.”
Edison said that the impact of force majeure in terms of timing and quantities will depend on a number of factors and in particular the evolution of regional conflicts and its impact on operational and safety considerations, production capacity, and local shipping logistics.
“To this extent, based on the information currently received from the seller, Edison considers a reduction in future deliveries from QatarEnergy estimated at around one third of the annual contracted volumes before taking into account any potential mitigation actions,” the company said.
US LNG exporter Venture Global LNG and Edison recently signed a commercial agreement to settle the pending arbitration over LNG sales from the Calcasieu Pass plant in Louisiana.
As part of the settlement, Edison and Venture Global have also agreed to deliver additional LNG cargoes to Europe.
Venture Global said the first delivery is scheduled for May at Italy’s Adriatic LNG import terminal, owned by VTTI and Snam.