Qatar and UAE Reroute Damaged LNG Tankers Amid Ongoing Blockade
Six months into the blockade of the Strait of Hormuz, Qatar and the United Arab Emirates (UAE) are employing emergency ship-to-ship transfers to keep liquefied natural gas (LNG) flowing to buyers worldwide. This costly measure has added significant time and expense to the already complex process.
According to ship-tracking data from Kpler and Vortexa, three LNG cargoes were transferred between vessels off Oman and the UAE in August before continuing to buyers in Asia. Two of these transfers involved vessels that had previously been damaged or involved in incidents. The QatarEnergy-run Al Rekayyat, which was struck by a projectile near Hormuz in July, transferred its cargo to the Qatari tanker Tembek off the UAE coast. Tembek later delivered the LNG to India.
Emergency Transfers Add Complexity and Cost
Ship-to-ship LNG transfers are technically complex and rarely used outside emergencies. Unlike crude oil, which can be transferred between vessels relatively quickly, LNG must be kept at minus 162 degrees Celsius to remain liquid. The transfer requires specialist cryogenic equipment, fenders, tugboats, and trained personnel on both ships.
Bogdan Ratiu, commercial and shipping director at LNG Synergy, emphasized that most recent operations were emergency transfers rather than routine commercial transfers. “This is a constraint; they have no choice in certain situations,” Ratiu said. He noted that an LNG ship-to-ship transfer can take around 30 to 35 hours and requires specialist equipment, tugboats, fenders, and specialist personnel.
Additional Costs and Time
Ratiu estimated that an LNG ship-to-ship transfer can add over $1 million (€860,600) in costs. The process also requires significant time, as vessels must navigate the Strait of Hormuz and complete the transfer. “It will easily add over $1 million if STS is involved,” he said.
Emergency Measures Reflect Desperation
Ratiu noted that QatarEnergy has traditionally tried to minimize the time LNG remains on board after loading, while Ras Laffan was designed for rapid ship turnaround. “Desperate times require desperate solutions,” he said. The ongoing blockade and subsequent emergency measures highlight the challenges faced by LNG exporters in maintaining supply chains.
Conclusion
As the blockade of the Strait of Hormuz continues to affect global LNG supplies, Qatar and the UAE are employing emergency measures to keep gas flowing to buyers worldwide. While these transfers add complexity, cost, and time, they reflect the desperation faced by LNG exporters in maintaining supply chains.
Original Article: Six months into Hormuz blockade, Qatar and UAE test ways to keep LNG moving — Yahoo