LNG Cargoes Transferred at Sea Amid Strait of Hormuz Tensions

Three liquefied natural gas (LNG) cargoes have been transferred between ships outside the Strait of Hormuz in recent weeks, according to ship-tracking firms. The cargoes were loaded in Qatar and the United Arab Emirates (UAE) for delivery to India and Japan.

The transfers are unusual because LNG tankers typically deliver directly to end-buyers, unlike crude oil. Several commercial vessels have faced attacks amid heightened tensions in the Strait of Hormuz since the US and Israeli war on Iran broke out on February 28.

One of the transferred cargoes was loaded by the QatarEnergy-controlled Al Rekayyat tanker after it was hit by a projectile near the Strait of Hormuz in early July. The cargo was then delivered to India's Dahej terminal on August 31, according to Kpler data.

The transfers have helped reduce LNG exports from the region since the conflict began, contributing to a five-month high Asian spot LNG price of $23.20 per million British thermal units (mmBtu), more than double pre-conflict levels.