UAE Defies Strait of Hormuz Risks, Continues LNG Exports

The United Arab Emirates (UAE) continues to export liquefied natural gas (LNG), despite ongoing risks in the Strait of Hormuz. An ADNOC LNG vessel was spotted in the Persian Gulf, having successfully navigated through the strait with its tracking systems switched off to evade detection.

According to Bloomberg, earlier this month Iranian forces targeted a Qatari LNG carrier, which has dampened enthusiasm for high-risk operations among energy transporters. ADNOC, however, remains proactive in the LNG sector and is increasing export volumes after neighboring Qatar invoked force majeure at its Ras Laffan LNG facility.

ADNOC Logistics and Services recently placed a $900-million order for four new LNG carriers to grow its fleet, with eight existing vessels currently being built at Samsung Heavy Industries and Hanwha Ocean. These ships are expected to be delivered starting in 2028 under 20-year time charters to ADNOC Gas.

LNG buyers have been pushing Qatar and the UAE to reduce prices for their gas due to increased risks in the region, which will likely impact insurance premiums that shippers must pay.