World’s Largest LNG Exporter, QatarEnergy, Halts Shipping Amidst Red Sea Attacks

QatarEnergy, one of the largest exporters of LNG, has prevented sending out tankers via the waters of the Red Sea even though production goes on, a senior source who has direct knowledge of the matter informed Reuters this Monday.

The Iran-backed Houthi group of Yemen since November has been attacking ships in the Red Sea, part of a channel that accounts for almost 12% of the shipping traffic globally, in what they state is an effort to support the Palestinians in their war with Israel. At least about four tankers used for carrying Qatari LNG were held up during the weekend after the U.S. and British forces responded by conducting dozens of sea and air strikes on the Houthi targets in Yemen.

The Al Huwaila, Al Ghariya, and Al Nuaman had reportedly loaded LNG at Ras Laffan based in Qatar and were sailing to the Suez Canal but halted off the Oman Coast on 14 January, per LSEG shiptracking data. The Al Rekayyat, returning to Qatar, paused on its route on 13 January in the waters of the Red Sea. It is a pause to receive security advice, if sailing (via the) Red Sea remains unsafe the vessels will go via the Cape, the source stated. It isn’t halting production.

The International Media Office and QatarEnergy did not respond to requests for comment immediately. The alternative way to Europe via the Cape of Good Hope could add about nine days to the 18-day journey from Qatar, mentioned Alex Froley, the ICIS LNG analyst. A trader has estimated that it could add almost 1 to 1.30 euros for each megawatt-hour (MWh) to the cargo rate, even though it would be offset partially by not paying the fees of the Suez Canal.

Qatar will take the long way via the Cape of Good Hope, resulting in significant delivery delays but nothing drastic for European balances. Yet another trading source was mentioned on Monday. Shipowners and the managers of the four vessels, including Nakilat Shipping Qatar Ltd, Pronav Ship Management, Teekay Shipping Glasgow, and Shell’s shipping and chartering arm STASCO, did not respond immediately to requests for comments.

Qatar shipped over 75 million metric tons (MMt) of LNG in 2023, per LSEG data, including 14 MMt to European buyers and 56.4 MMt to Asia. While many of the LNG vessels have altered their courses, others have continued sailing past Yemen via the Red Sea and the Suez Canal, via which Qatar, Russia, and the US are the most active shippers of the fuel.

S&P estimates Qatar’s LNG cargo via the canal at about 14.8 MMt each year, the U.S. cargo at about 8.8 MMt, and the Russian ones at about 3.7 MMt. Front-month Europe’s benchmark gas rates on the Dutch TTF hub were observed to be down to 1.20 euros at 30.40 euros for each megawatt-hour (abbreviated MWh) by around 0842 GMT, LSEG data reflected. Asia spot LNG prices dropped to a seven-month low of nearly $10.10 per million British thermal units (abbreviated mmBtu) on Friday, supported by the healthy storage levels in northeast Asia and Europe. Oil prices reportedly edged lower after rising 1% on Friday on the concerns that the war could disrupt the supplies.

Reference: Offshore Energy

World’s Largest LNG Exporter, QatarEnergy, Halts Shipping Amidst Red Sea Attacks appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News