LNG shipments start moving through Hormuz in long road to recovery
Before the war, roughly a fifth of the world’s LNG passed through the strait, and the disruption has left Asian buyers scrambling.
LNG shipments have resumed moving through the Strait of Hormuz, indicating a long-awaited recovery in production, according to Bloomberg. Qatar's first liquefied natural gas cargo passed through the strait in weeks, while oil company ADNOC is positioning ships for loadings, suggesting a potential ramp-up in production if flows remain steady.
The disruption caused by the war had left Asian buyers scrambling for alternatives, with Pakistan and Bangladesh spending around $1.9 billion to replace canceled Qatari cargoes, costing more than double the loss of Gulf deliveries. QatarEnergy has extended force majeure for customers in Europe and Asia until the end of September, pushing back the timeline for resuming normal exports.
The company has also purchased approximately $1 billion worth of LNG cargoes from the US to help alleviate supply disruptions for some of its Asian buyers, as reported by Reuters.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
