Hormuz LNG Flows Restart Amid Slow Recovery

The Strait of Hormuz has seen its first liquefied natural gas (LNG) cargo in weeks, as Qatar sent a shipment through. This is a positive sign that production may ramp up if the current flows are sustained.

Before the war, about one-fifth of the world's LNG passed through the strait, and its disruption has left Asian buyers scrambling. Pakistan and Bangladesh have spent over $1.9 billion replacing canceled Qatari cargoes - more than double the cost of the lost Gulf deliveries, according to Bloomberg's Stephen Stapczynski.

The small number of ships moving now indicates a slow recovery. QatarEnergy has extended its force majeure for customers in Europe and Asia through the end of September, pushing out expectations of when normal exports will resume.