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QatarEnergy routes first LNG cargo through Hormuz after tanker strike

The vessel was tracked bound for Pakistan, a major buyer that has been pushed to the spot market due to supply squeeze from the US, Israel and Iran conflict.

Reported · Written up by our desk · Energy

QatarEnergy has sent its first LNG cargo through the Strait of Hormuz since a tanker was struck in the waterway earlier this month, according to OilPrice citing Bloomberg. The LNG carrier idled in the strait since early July, then crossed with its geolocation devices turned on, the outlet reported. Ship tracking data cited by Bloomberg indicates the tanker is bound for Pakistan.

OilPrice also said Qatar is a key LNG supplier for Pakistan, but the US, Israel and Iran war has tightened supply, pushing Pakistan to seek cargos on the spot market at a substantial premium. In the same report, OilPrice noted Reuters earlier said QatarEnergy bought 33 LNG cargos to make up for lost production, citing unnamed sources.

OilPrice further reported that Bloomberg suggested the successful crossing may indicate Qatar is preparing to ramp up production. QatarEnergy’s force majeure declared in March remains in effect and has been extended until October, the outlet added.

The report said QatarEnergy told markets it could restore 50% of LNG production within a month after the US and Iran agreed a ceasefire that reopened Hormuz, and that by mid August Qatar was described as able to restore 80% of pre war liquefied gas production. OilPrice cautioned that with the ceasefire ended and strikes resuming, any return to prior output could be delayed.

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