First LNG Cargoes Transit Hormuz Since July as Producers Test Oman Route

At least two LNG tankers transited the Strait of Hormuz in the week of September 18, the first confirmed shipments through the strait since Iran struck a Qatari tanker in early July and Persian Gulf LNG exports fell to a near halt, according to gCaptain and Rigzone.

Before the July attacks, around three LNG cargoes crossed Hormuz daily. Qatar supplies roughly a fifth of global LNG, and months of blocked exports pushed spot prices to their highest in more than three years.

Getting cargo out has required workarounds. Since mid-August, producers arranged at least three LNG ship-to-ship transfers off the Oman coast, a harder option than crude oil transfers because of the pressurised cargo and specialist equipment needed. A tanker that loaded at Ras Laffan in late August appeared later in the Gulf of Oman with no AIS track through the strait itself. Jamming and interference are common in the area, gCaptain and Rigzone both note.

The transits come as crossings through Hormuz have sat at near-record lows. Just two days before, only four crossings were logged in a full day on September 16. The economic toll has been steep: VLCC freight rates on the Gulf of Oman to China route hit 450 Worldscale in September, roughly $11.50 per barrel and the highest on record.