Hormuz LNG Shipments Resume Amid Global Shortage

Liquefied natural gas (LNG) shipments have resumed through the Strait of Hormuz, according to ship-tracking data compiled by Bloomberg. At least two LNG carriers have transited the waterway this week, indicating that producers are trying to increase flows to a market struggling with a lack of supply and surging prices.

The trickle of shipments follows a virtual standstill in exports from the Persian Gulf since an Iranian attack on a Qatari tanker in early July. The lack of supply has sent spot prices to their highest level in more than three years, putting buyers in Asia and Europe at risk of facing even higher costs as winter approaches.

The resumption of LNG shipments through Hormuz is seen as a relief for Asian and European buyers, particularly those in Pakistan and Bangladesh who rely on gas via the waterway. Every shipment that gets through means they may not need to purchase a replacement from the expensive spot market.