Qatar and the United Arab Emirates have resorted to ship-to-ship (STS) transfers outside the Strait of Hormuz to keep liquefied natural gas (LNG) cargoes moving amid continuing disruption to shipping through the strategic waterway.
Three LNG cargoes loaded in Qatar and the UAE were transferred between vessels in international waters off Oman and the UAE, according to ship-tracking data reviewed by Reuters. The unusual operations allowed the cargoes to continue toward destinations including India and Japan.
Rare Ship-to-Ship LNG Operations
STS transfers are common for some oil and petroleum cargoes but are relatively unusual for LNG because of the specialised equipment and safety requirements involved.
One transfer involved the GasLog Shanghai and GasLog Savannah, both operated by Greek shipping company GasLog. The GasLog Shanghai had previously been involved in an incident near the Strait of Hormuz in July.
Another Qatari cargo was loaded aboard the Al Rekayyat, which had earlier been hit by a projectile. The LNG was subsequently transferred to the Tembek, which continued the voyage toward India.
UAE Cargo Headed to Japan
A third transfer involved ADNOC’s Mraweh and LNG Enugu. The cargo was transferred outside the Strait and is now travelling toward Japan.
The operations highlight how Gulf LNG suppliers and shipping companies are attempting to maintain deliveries while limiting vessels’ exposure to the heavily disrupted Hormuz route.
Hormuz Disruption Hits LNG Trade
The Strait of Hormuz remains a critical energy chokepoint, with major volumes of global oil and LNG traditionally passing through the waterway.
The continuing conflict involving the United States, Israel and Iran has sharply disrupted maritime traffic and created uncertainty for LNG exporters and importers. Several vessels have remained stranded or delayed in the Gulf, while some operators have sought alternative routing and transfer arrangements.
The disruption has also pushed up LNG prices in Asia. Asian spot LNG prices were reported at around $23.20 per million British thermal units (mmBtu), more than twice their pre-conflict level, increasing costs for buyers and raising concerns over broader inflationary pressures.
India Among Key Destinations
India is one of the markets benefiting from the alternative LNG logistics arrangements. The Tembek carrying the transferred Qatari cargo continued toward India after the offshore transfer.
India relies heavily on imported LNG to meet demand from power generation, fertiliser production, city gas distribution and industrial users. Any prolonged disruption to Gulf supplies could therefore have implications for domestic gas availability and procurement costs.
The emergence of offshore STS transfers provides exporters with a potential logistical workaround, but it also introduces additional operational complexity, costs and safety considerations.
Shipping Industry Faces New Challenges
The LNG transfers underscore the broader impact of the Hormuz disruption on maritime logistics. Shipping companies are having to balance cargo delivery commitments against navigational risks, insurance considerations and vessel availability.
QatarEnergy, ADNOC and several shipping companies involved in the operations declined to comment on the individual cargo movements.
If disruptions continue, more LNG operators could explore alternative logistics solutions, including offshore ship-to-ship transfers, to keep Gulf-origin cargoes moving to Asian markets.