Red Sea conflict shows importance of route for LNG shipments

ISTANBUL, TÜRKİYE - JAN. 16, 2024: The critical importance of the Red Sea route for LNG has come to light due to disruptions to shipments from the recent conflict in the region, where between 30 and 40 LNG cargo ships pass through every month. Since the beginning of this week, at least three liquefied natural gas (LNG) ships from Qatar appear to have been halted near the coast of Oman due to attacks on vessels using the Red Sea route. Information compiled from shipping data shows that the positions of Qatar's Al Ghariya, Al Huwaila and Al Nuaman LNG tankers appear immobile. Another Qatari LNG carrier, Al Rekayyat, which had not updated its position since Jan. 10, was also observed to have paused in the middle of the Red Sea. Houthis in Yemen have targeted commercial ships in the Red Sea in retaliation for Israel's attacks on Gaza since late last year. In response, many shipping companies decided to stop their voyages through this route. In recent weeks, many LNG tankers have opted to sail around the Cape of Good Hope to avoid transit through the Red Sea. Alex Froley, an LNG market analyst at ICIS, the world’s largest petrochemical market information provider, told Anadolu that if Qatar has to send cargoes to Türkiye and Europe by circumnavigating Africa rather than through the Suez Canal, journey times could more than double. "ICIS calculates it could take around 29 days for an LNG tanker to reach Turkey by going around Africa, compared with only 12 for going through the Suez Canal. This would mean possible delays and Qatar might have to find more ships to make sure it can meet all its deliveries, meaning rising costs," Froley said. LNG transit has been subject to disturbances on key trade routes, he said, citing droughts in the Panama Canal that lowered water levels and made it difficult for shipments and the recent disruptions in the Suez Canal on the Red Sea route. (Footage by Fareed Kotb /Anadolu Agency via Getty Images)