Qatar resumes LNG exports through Hormuz Strait after six-week hiatus

Qatar signals LNG export restart as ship clears Hormuz

A QatarEnergy-owned liquefied natural gas (LNG) carrier has passed through the Strait of Hormuz, marking the first visible movement of Qatar’s LNG out of the Gulf in almost six weeks. The Al Marrouna, which loaded its cargo at Ras Laffan early last month, was spotted in the Gulf of Oman on Tuesday morning local time. According to ship-tracking data compiled by Bloomberg, the tanker is bound for Port Qasim in Pakistan and is expected to arrive there on Thursday.

Background on Hormuz Strait disruption

The vessel's passage comes after one of Qatar’s LNG tankers was attacked late last July, prompting a temporary halt in exports through the strategically crucial Strait of Hormuz. Prior to this incident, Qatar accounted for about one-fifth of global LNG export volumes and the disruption has affected gas markets significantly.

First movement since attack

The Al Marrouna's journey is significant as it marks the first laden carrier to move through Hormuz since July 31. This development could indicate Qatar’s intention to resume regular exports through this key waterway, though it remains unclear if such a resumption will happen soon. Several empty Qatari LNG tankers have started moving back toward the Persian Gulf, suggesting preparations for potential future shipments.

Concerns over Hormuz agreement

Iran has stated that an agreement with Oman to manage vessel traffic in the Strait of Hormuz is imminent. However, there are growing concerns that such an agreement could strengthen Iran’s control over the strait and potentially prompt a U.S. response. This underscores the ongoing geopolitical tensions surrounding energy flows through the region.

Ship-to-ship LNG transfers as workaround

In the meantime, Qatar and other Gulf exporters are resorting to ship-to-ship (STS) transfers as a means of maintaining gas supplies to buyers worldwide. Three recent STS operations involved transferring cargoes from damaged or incident-involved vessels off the coasts of Oman and the UAE before delivering them to their final destinations in Asia. These emergency measures add significant costs and time, with each transfer reportedly costing over $1 million and adding around 35 hours to transit times.

What this means for operators

The resumption of Qatar’s LNG exports through the Strait of Hormuz has important implications for ship operators. While it signals a potential easing of export restrictions, operators must remain vigilant given ongoing geopolitical tensions and the need for contingency plans involving STS transfers. These operations are costly and time-consuming, which could impact fleet management strategies and operational costs in the coming months.

Related coverage

• Filipino Crew Refuses to Sail Through Strait of Hormuz After Attack
• Two Saudi Tankers Struck by Unknown Projectiles in Strait of Hormuz