- QatarEnergy, a leading LNG exporter, temporarily halts shipments via the Red Sea due to Houthi attacks, causing delays for Qatari tankers.
- Considering alternative routes, including the longer Cape of Good Hope journey, QatarEnergy adapts to geopolitical challenges.
- This decision emphasizes the LNG industry’s resilience in navigating security concerns while maintaining a pivotal role in the global energy market.
Security Measures Amidst Red Sea Attacks
In response to ongoing attacks by Yemen’s Iran-backed Houthi group on vessels in the Red Sea, QatarEnergy, the world’s second-largest exporter of liquefied natural gas (LNG), has ceased sending tankers through the Red Sea while maintaining production, according to a senior source. The Houthi attacks, aimed at supporting Palestinians in the conflict with Israel, have disrupted a crucial shipping route, accounting for approximately 12% of global shipping traffic. Despite the attacks, QatarEnergy clarified that the pause in Red Sea shipments is a security measure, and production has not been halted.
Shipping Disruptions and Exploration of Alternative Routes
Over the weekend, at least four tankers carrying Qatari LNG were delayed due to the attacks. The vessels, including Al Ghariya, Al Huwaila, Al Nuaman, and Al Rekayyat, faced interruptions in their journeys. They had loaded LNG at Ras Laffan in Qatar and were en route to the Suez Canal, but they stopped along the coast of Oman and in the Red Sea, respectively, based on LSEG shiptracking data.
The pause in Red Sea shipping is primarily for obtaining security advice. If passing through the Red Sea remains unsafe, QatarEnergy is considering an alternative route via the Cape of Good Hope. This alternative route to Europe could add approximately nine days to the voyage from Qatar. While it might result in delivery delays, it is not expected to dramatically impact European balances.
Awaiting Responses and Broader Market Implications
The International Media Office of the Qatari government and QatarEnergy have not yet responded to requests for comments on the situation.
The Red Sea attacks by Houthi militants have broader implications, disrupting maritime trade through the Suez Canal. Some vessels are choosing to reroute to a longer East-West path via the southern tip of Africa. Shipowners and managers of the affected vessels, including Teekay Shipping Glasgow, Pronav Ship Management, Nakilat Shipping Qatar Ltd, and Shell’s shipping and chartering arm STASCO, have not provided immediate comments.
Qatar, a major LNG exporter, shipped over 75 million metric tons (MMt) of LNG in 2023, with significant volumes sent to both Europe and Asia. The disruption caused by the Red Sea attacks is affecting LNG shipments, but Qatar’s decision to explore alternative routes reflects its commitment to navigating challenges and maintaining its position as a key player in the global LNG market.
While the situation has led to some LNG vessels altering their courses, others continue to sail through the Red Sea and the Suez Canal. Qatar, the United States, and Russia are among the most active shippers of LNG through these vital waterways. The impact on shipping and the potential for delivery delays underscore the geopolitical challenges facing critical energy trade routes. As the situation unfolds, global markets will monitor developments in LNG shipping and the broader implications for energy security.
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Source: Reuters
