Speculation About LNG Shipments as Qatar Sends Carrier Through Hormuz

A move by QatarEnergy to send an LNG carrier through the Strait of Hormuz is drawing wide attention and spurring speculation about future shipments. The LNG carrier Al Areesh (148,786 cbm) cleared the Strait, marking the first time an LNG carrier working for Qatar has made the transit in nearly three weeks.

The vessel, which was built in 2007 and is operating under the Bahamas flag managed by Seapeak Maritime, is shown in the Gulf of Oman. Kpler indicates the vessel loaded at Qatar’s Ras Laffan terminal at the beginning of July and had been holding near Qatar.

Al Areesh is reported by LSEG to have begun its movement on July 29, and yesterday Iran’s Fars News Agency said an unnamed Qatari LNG carrier had been given permission to make the transit. Iran, of course, is trying to gain support from its neighbors for its plan to control the Strait of Hormuz.

The vessel’s AIS shows that it is bound for Pakistan, which has been a large customer of Qatar and the key mediator in the peace talks between Iran and the United States. Pakistan, since the start of the war, has been experiencing energy shortages and has taken steps to reduce demand. Media reports have said that Pakistan was buying LNG on the spot market at significantly higher prices to make up for some of the shortfall.

QatarEnergy did not comment on the movement of the vessel. It had only sent one cargo aboard the Al Rayyan on July 9, two days after the vessel Al Rekayyat was struck on July 7 while attempting to make the transit. Kpler reports that the GasLog Shanghai also made the transit on July 9 and that the last LNG cargo to transit the Strait was aboard the Adnoc-operated Al Hamra two days later on July 11.

At mid-July, Kpler reported that there were a total of 21 LNG carriers currently inside the Gulf, including five that were laden. Another 13 had only ballast, and four vessels were berthed. Bloomberg points out that there are more than a dozen tankers near Ras Laffan currently, although there was no indication that any were loading or moving toward the Strait.

However, tracking data also detected the Adnoc (Abu Dhabi National Oil Company) LNG carrier Mrooh entering the Persian Gulf. The vessel had gone dark outside the Strait and, after several days, has reappeared inside the Gulf.

QatarEnergy, however, has extended the force majeure that it invoked after Iran began its attacks, and it is now officially set to run until October, while there have also been reports that it placed idle vessels into the charter market. Reuters reports that QatarEnergy bought 33 LNG cargoes to make up for shortfalls on contracts.

QatarEnergy had previously said after the attacks on the Ras Laffan LNG complex that it could have 50 percent of production back online in a month and possibly 80 percent by mid-August. However, it has said it would take up to five years to repair all the damage at an estimated cost of about $20 billion.