Qatar and UAE Turn to Rare LNG Ship Transfers as Hormuz Crisis Drags On
Three LNG carriers loaded from Qatar and the United Arab Emirates in the Persian Gulf have transferred their cargoes onto other vessels outside the Strait of Hormuz in the past month, a move that’s highly unusual for LNG cargoes but one that could raise the crippled LNG shipments from the region. LNG traffic at the Strait of Hormuz nevertheless remains at a standstill, even though oil flows are…
Qatar and the United Arab Emirates have resorted to an uncommon method of transferring liquefied natural gas (LNG) shipments outside the Strait of Hormuz as tensions in the region persist, according to recent reports. In the past month, three LNG carriers loaded with gas from Qatar and the UAE have offloaded their cargo onto other vessels beyond the Strait, a practice that is unusual for LNG cargoes but could help alleviate the current crisis.
Despite a slight rebound in oil shipments through the Strait, LNG traffic remains stalled, unlike crude oil. This is due to the difficulty in conducting ship-to-ship (STS) transfers of LNG, a process that Persian Gulf producers, including Qatar and the UAE, have been employing to ship oil to customers. Three LNG cargoes, including the Greek-owned GasLog Shanghai, the Qatar-owned Al Rekayyat, and ADNOC's Mraweh, have been involved in STS transfers to various destinations, with the cargo on the Tembek being delivered to India on August 31.
The ongoing conflict between the U.S. and Iran has contributed to the high prices of LNG in Asia and Europe, adding to the challenges faced by the region's LNG shipments.
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