Hormuz Disruptions Send LNG Shipping Costs Soaring
Disruptions to vessel traffic through the Strait of Hormuz have pushed liquefied natural gas (LNG) shipping costs to their highest levels since the peak of the 2022 energy crisis. The average bunker fuel price for LNG carriers rose by 73% in March to more than $800 per tonne, its highest level since 2022.
The Strait of Hormuz is the only maritime export route for LNG shipments from Qatar and the United Arab Emirates, which together account for around one-fifth of global LNG supply. Following the escalation of conflict in the Middle East on February 28, LNG exports from Qatar and the UAE came close to a standstill.
Between March and June, more than 300 Qatari LNG cargoes and around 20 UAE cargoes failed to reach international markets. An estimated 160 LNG carriers were stranded inside the Gulf or forced to remain at anchor in the Gulf of Oman, limiting the number of vessels available in the spot market.