QatarEnergy has successfully sent an LNG cargo via the Strait of Hormuz, three weeks after one of its LNG carriers was struck in the waterway, Bloomberg has reported, noting that the vessel had idled in the strait since early July but crossed it with its geolocation devices turned on.
According to ship-tracking data cited by Bloomberg, the tanker is bound for Pakistan. The South Asian nation is a major buyer of Qatari liquefied gas, but the war between the United States, Israel, and Iran has squeezed supply, forcing Pakistan to look for LNG cargos on the spot market, paying a substantial premium.
In a separate report from earlier today, Reuters said QatarEnergy had bought 33 LNG cargos to make up for its own lost production, according to unnamed sources. Bloomberg, on the other hand, suggested in its report that the successful Hormuz crossing of the LNG carrier may indicate that the Gulf state is preparing to begin ramping up production. The force majeure that QatarEnergy declared in March is still in effect, and the company recently extended it until October.
In June, after the U.S. and Iran agreed a ceasefire that involved the reopening of Hormuz for shipping, QatarEnergy said it could restore 50% of LNG production within a month. By mid-August, Qatar was said to be able to restore 80% of pre-war production of liquefied gas. Needless to say, with the ceasefire over and strikes resumed, that production return will likely be delayed.
QatarEnergy expects the damage to the Ras Laffan LNG complex, the world’s single largest LNG-producing facility, to cost it about $20 billion per year in lost revenue and to take up to five years to repair. Now, the company is also facing buyer pressure to cut prices, as importers in Asia and Europe complain about higher insurance costs driven by the continued hostilities in the Persian Gulf.
By Irina Slav for Oilprice.com
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