Qatar and the UAE are utilizing complex ship-to-ship transfers to maintain LNG exports as the ongoing war continues to block the Strait of Hormuz.
Key facts
- •Three LNG cargoes were transferred between vessels off Oman and the UAE in August.
- •The Al Rekayyat, GasLog Shanghai, and Mraweh were among the vessels involved in recent transfers.
- •Qatar is estimated to have lost approximately $24 billion in gas sales during the first six months of the war.
- •Fitch Ratings affirmed Qatar's AA sovereign rating but maintained a negative outlook due to ongoing export uncertainty.
- •Qatar and Iran held talks in late August regarding a potential temporary shipping corridor and mine-clearing project.
Qatar and the UAE are rerouting damaged LNG tankers through emergency ship-to-ship transfers to keep gas flowing to international buyers. These operations, necessitated by the ongoing blockade of the Strait of Hormuz, add over $1 million in costs and up to 35 hours of sailing time per transfer. Three such operations occurred in August, involving vessels that had previously sustained damage or were involved in incidents near the waterway.
By the numbers
Complex Emergency Operations
Ship-to-ship transfers for LNG are technically demanding and rarely used, as the gas must be maintained at minus 162 degrees Celsius. The process requires specialized cryogenic equipment, fenders, tugboats, and trained personnel. Unlike crude oil, which is easily transferred, LNG requires these measures to prevent losses from boil-off, where gas evaporates during extended transit times. Bogdan Ratiu of LNG Synergy noted that these operations are emergency responses rather than routine commercial practices.
Impact on Global Supply
The blockade has severely disrupted exports from Qatar's Ras Laffan Industrial City, the world's largest LNG production complex. Qatar exported only 18 cargoes in the first six months of the war, a 96% decline compared to the 509 cargoes exported during the same period the previous year. The International Energy Agency reported that Gulf LNG loadings fell by 35 billion cubic metres between March and June, though non-Gulf production increases have offset about three-quarters of this shortfall.
Timeline
- JulyThe tanker Al Rekayyat was struck by a projectile near the Strait of Hormuz.
- Late JulyThe GasLog Shanghai was involved in an incident while leaving the Strait of Hormuz.
- AugustThree LNG cargoes were transferred between vessels off the coasts of Oman and the UAE.
- Late AugustQatar and Iran held talks in Tehran regarding a potential shipping corridor.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business.
