Summary
- Reports said the route for Qatari LNG shipments, which had been blocked since the Iran war, may be partially reopening.
- An LNG carrier that left Qatar's Ras Laffan Port is sailing toward the Strait of Hormuz after receiving prior approval from Iran.
- Even if the vessel completes the passage, it would be difficult to conclude that Qatar LNG exports have fully returned to normal.
Forecast Trend Report by Period
A route for Qatari liquefied natural gas shipments that was cut off after the Iran war may be reopening in part. An LNG carrier that left Qatar is sailing toward the Strait of Hormuz after receiving prior approval from Iran. If the voyage succeeds, it would mark the first passage by a Qatari LNG vessel through the strait since the war began.
Reuters, citing shipping data from London Stock Exchange Group Plc, reported on May 9 that the LNG carrier Al Kharaaitiyat had departed Qatar's Ras Laffan port and was heading toward the Strait of Hormuz. The vessel's destination is Pakistan's Port Qasim.
Iran approved the voyage in advance, according to people familiar with the matter. The cargo was sold under a government-to-government contract between Pakistan and Qatar. Iran allowed the passage to build trust with Pakistan, which has been acting as a mediator in ceasefire talks with the US, the people said.
Pakistan has faced a severe gas shortage since the war began. It has asked Iran to allow LNG carriers to pass through the Strait of Hormuz, even on a limited basis.
The Al Kharaaitiyat is a large LNG carrier registered in the Marshall Islands. It can carry about 212,000 cubic meters of LNG. The vessel is managed by a Qatari shipping company.
The Strait of Hormuz is a critical chokepoint for Middle Eastern energy shipments. Transit by Qatari LNG carriers has effectively been blocked since the Iran war began in late February. On April 6, Iran's Islamic Revolutionary Guard Corps stopped two Qatari LNG carriers heading for the strait and ordered them to wait without explanation.
Qatar is the world's second-largest LNG exporter and mainly supplies Asian markets. But Iranian attacks early in the war damaged 17% of Qatar's total LNG export capacity, according to reports. Restoring production facilities with annual capacity of 12.8 million tons is expected to take three to five years.
If the vessel makes the passage, it could signal an easing of the blockade at the Strait of Hormuz. Even so, that would not mean Qatar's LNG exports have fully returned to normal, given that Iran's approval is reported to be limited to cargoes bound for Pakistan.
Kim Dae-young, Hankyung.com reporter kdy@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
