A liquefied natural gas tanker successfully sailed out of Qatar through the Strait of Hormuz, breaking through a blockage caused by renewed military exchanges between the US and Iran.
Bloomberg reported Tuesday (local time) that the Al Marrouna, which loaded LNG in Qatar early last month, crossed the Strait of Hormuz and exited the Persian Gulf that morning. The tanker was sailing in the Gulf of Oman. It is expected to arrive at Pakistan's Port Qasim around Thursday.
It is the first time an LNG tanker has passed through the Strait of Hormuz since July. Bloomberg said several empty Qatari LNG tankers have been spotted returning to the Persian Gulf in recent weeks. This is a sign that Qatar appears to be resuming LNG exports through the strait, which it had suspended after one of its tankers came under attack in late July.
Qatar has accounted for a fifth of global LNG exports, but its LNG shipments through the Strait of Hormuz plunged after the Iran war closed off the waterway in February. Tensions eased and the supply chain appeared to be recovering in June after the US and Iran signed an MOU on an end of war. But those hopes receded when the two countries' military exchanges intensified again in July.
The US has been ratcheting up economic pressure on Iran to bring it back to the negotiating table. Oman, which borders the Strait of Hormuz along with Iran, said Monday that it had reached some agreement with Iran on managing passage through the strait. The agreement followed several rounds of talks. Even if Iran and Oman reach a deal, it remains unclear how the US would respond, and observers say passage through the Strait of Hormuz remains risky.
Qatar notified European and Asian buyers last month that it was extending the force majeure clause on its LNG supply through October. As a result, LNG prices remain elevated.
kate01@heraldcorp.com
