Qatar has demonstrated signs of readiness to increase its exports through the Strait of Hormuz by consolidating a fleet of empty liquefied natural gas (LNG) tankers in the Persian Gulf. According to satellite imagery analysis and ship tracking data, at least 12 empty tankers belonging to QatarEnergy are waiting to be loaded in waters near the country.
Tanker Fleet Details
These vessels are collectively capable of carrying about 1.1 million tons of LNG, which constitutes approximately 2 percent of the total capacity of the global tanker fleet. However, there is no guarantee that these ships will move through the Strait of Hormuz after loading, especially given the increase in Iranian attacks on vessels.
Read more: The cargo of the tanker 'Arzoo' has been sanctioned
Impact on the Gas Market
The potential increase in LNG exports from Qatar could help lower global gas prices. Gas prices in Asia and Europe reached their highest levels since late 2022 last month. LNG traffic through the Strait of Hormuz in September reached its highest level since the onset of the war, but is still about 75 percent lower than the levels in February, before the U.S. and Israeli attacks on Iran.
This recent increase in export flow has surprised some buyers. For example, India has had to cut back on some of its Spot purchases to make room for Qatari cargoes. The market is closely monitoring whether this recovery trend in LNG exports will continue.
While oil exports have surged in recent months, most crude oil has been transferred to other vessels in the Gulf of Oman, an approach known as 'shuttling.' This type of transfer is technically more challenging for supercooled fuel.
Overall, Qatar, as one of the largest LNG exporters in the world, is striving to maintain its position in global markets, and the increase in empty LNG fleet seems to reflect this effort. However, security challenges and market volatility could impact the country's export plans.
Read more: Captains of tankers receive $100,000 monthly to pass through the Strait of Hormuz · Attack on the tanker On Peace in the Strait of Hormuz, 12 sailors injured
