Hormuz LNG Flows Surge Amid Winter Supply Crunch

LNG tankers have been successfully navigating through the Strait of Hormuz, signaling that Qatar and the UAE are intensifying efforts to push through LNG supply after months of near-total halt.

The Strait of Hormuz has seen at least two LNG carriers transit so far this week, with another two detected engaging in ship-to-ship transfers outside the Strait offshore Oman. This uptick in LNG cargoes exiting the Strait indicates that Persian Gulf producers are working to overcome logistical challenges and ensure a steady supply.

The recovery of oil flows from the Strait of Hormuz to about two-thirds of pre-war levels is attributed to dark transits of tankers, but LNG flows have been largely stagnant over the past six months. In contrast to crude oil, it's more difficult to shuttle-ship LNG through Hormuz and then reload it via a ship-to-ship transfer.