Qatar is actively recalling empty liquefied natural gas (LNG) tankers in preparation for restarting shipments, which globally account for approximately one-fifth of the total supply. This move follows an interim peace agreement between the US and Iran to reopen the Strait of Hormuz, a crucial waterway for energy transit.
Bloomberg ship-tracking data indicates that four tankers, either owned by Qatar's shipping arm or under long-term charter, are currently navigating the Strait of Hormuz. This marks the largest single-day transit of empty LNG ships through the strait since the conflict began over three months ago. Additionally, another five Qatari-linked vessels are positioned near eastern Oman, with more on the way, all signaling Ras Laffan, Qatar's major LNG export plant, as their destination.
Prior to the US-Iran conflict, Qatar was the world's second-largest LNG exporter. Its exports were halted due to attacks on its liquefaction facilities and the closure of the Strait of Hormuz. While some cargoes have been exported recently, totaling just over 300,000 tons of LNG in the week to June 19 (the highest since early March), this is still only about a fifth of pre-conflict levels. Qatar aims to resume most production within two months of the Strait of Hormuz being fully and safely open.
The recommencement of operations at Ras Laffan, the world's largest LNG export plant, is being closely watched, as a swift resumption could help stabilize global natural gas prices. The recent US-Iran tensions have already caused Dutch natural gas prices, an international benchmark, to rise. This comes despite an incident at the Barzan gas supply facility, near Ras Laffan, which experienced an explosion and fire during startup; it's currently unclear if this will impact LNG output.
Adding to the optimism, at least three other empty Qatar-linked tankers have traversed the waterway in the past week. Before these recent movements, Qatar had not brought any empty LNG carriers into the Persian Gulf due to significant security concerns. The return of these vessels signifies Qatar's preparation to significantly ramp up exports, with several heading towards the Ras Laffan plant.
