In a week marked by heightened security concerns, at least three liquefied natural gas (LNG) ships from Qatar have been reported as stationary near the coast of Oman, possibly due to security threats in the Red Sea route. The vessels, including Al Ghariya, Al Huwaila, Al Nuaman, and Al Rekayyat, have seemingly paused their journeys, with shipping data indicating a lack of movement.
This development is linked to recent attacks on vessels in the Red Sea, leading to disruptions in the shipping routes. Houthi rebels in Yemen have targeted commercial ships in response to Israel’s actions in Gaza, prompting several shipping companies to halt voyages through the Red Sea. Many LNG tankers have opted to take longer routes, sailing around the Cape of Good Hope, to avoid the Red Sea.
Alex Froley, an LNG market analyst at ICIS, highlighted potential repercussions for Qatar’s LNG deliveries to Turkey and Europe. Circumventing Africa instead of using the Suez Canal could more than double journey times, with estimates suggesting around 29 days compared to the usual 12. This could lead to delays, increased costs, and the need for additional ships to meet delivery commitments.
Despite these challenges, LNG’s flexibility as a power source becomes evident during disruptions, providing an alternative amid disturbances in key trade routes. The LNG market has historically proven adaptable, offering solutions to supply shortages during various crises, such as Japan’s nuclear plant shutdown in 2011 and Europe’s gas supply issues after Russia halted pipeline deliveries.
While disruptions persist on traditional routes, analysts note that LNG remains a versatile option, capable of adapting to changing circumstances and potentially redirecting shipping routes in the medium to long term.
