Qatar and UAE Reroute LNG Cargoes through Ship-to-Ship Transfers

LNG exporters are finding creative ways to bypass the disruption in the Strait of Hormuz, with three Gulf cargoes recently moved using ship-to-ship transfers. Qatar and the UAE are rerouting damaged LNG tankers via these emergency operations to keep gas flowing to buyers worldwide.

Ship-to-ship LNG transfers require specialist cryogenic equipment, fenders, tugboats, and trained personnel on both ships, making them a costly and rare occurrence in the LNG trade. An LNG ship-to-ship transfer can take around 30 to 35 hours and costs over $1 million if STS is involved.

The QatarEnergy-run Al Rekayyat, which was struck by a projectile near Hormuz in July, transferred its cargo to the Qatari tanker Tembek off the UAE coast. The cargo was later delivered to India.