Gulf LNG cargoes rerouted via ship-to-ship transfers
In August, three LNG cargoes loaded in Qatar and the UAE were transferred between vessels off Oman and the UAE to avoid passage through the contested Strait of Hormuz, including two vessels previously damaged. Ship-to-ship transfers for LNG are rare, technically complex and require cryogenic gear, tugs and trained crews, typically adding about 30–35 hours and over $1 million per transfer. Qatar and UAE exports have dropped sharply during the war, with the IEA citing a 35 bcm decline between March and June, partly offset by nearly 27 bcm of extra non-Gulf output, while market risk and costs remain elevated.
Gulf LNG shipments are being rerouted using costly, time-consuming ship-to-ship transfers
Context
A war has disrupted traffic through the Strait of Hormuz. That cut Gulf LNG exports and forced emergency ship-to-ship transfers. Shipping may be rerouted until talks or mine clearance restore normal transit.
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