Qatar has started to return LNG tankers back to the Middle East in anticipation of an imminent reopening of the Strait of Hormuz that would allow the world’s second-biggest LNG exporter to start producing and moving LNG supply again.
At least four Qatar-owned tankers have headed in recent days to Ras Laffan, Qatar’s LNG complex in the Persian Gulf, and a fifth is en route to the region, vessel-tracking data compiled by Bloomberg showed on Wednesday.
Another four LNG carriers are idling in the Gulf of Oman and could soon move to pass inbound through the Strait of Hormuz to Qatar’s LNG export facilities, according to the data.
Since the Iran war began on February 28, Qatar has not moved any of its LNG tankers into the Persian Gulf.
But the U.S.-Iran deal and the expected imminent reopening of the Strait of Hormuz have the tiny Gulf state and major LNG exporter move quickly to restore lost supply – and revenues – due to the conflict.
Qatar prepares to quickly restart and restore liquefied natural gas output within weeks after the eventual reopening of the Strait of Hormuz, Bloomberg reported earlier this week, citing anonymous sources with knowledge of the plans.
State firm QatarEnergy, which curtailed LNG output in early March before an LNG facility was hit by Iranian missiles in mid-March, has now told its customers that it could restore about 50% of its production capacity within a month after safe navigation through the Strait of Hormuz is restored. Within two months, Qatar could return 80% of its capacity, according to Bloomberg’s sources.
All this, of course, is conditional on the U.S.-Iran deal holding and navigation and safety through the critical oil and LNG chokepoint being restored and sustained.
Qatar will be able to restore up to 80% of its LNG production capacity in the near term—the remaining 20% would take years to repair from damages from the Iranian missile strikes, as QatarEnergy guided as early as March.
By Tsvetana Paraskova for Oilprice.com
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