$1 million: Qatar and UAE reroute LNG via ship-to-ship transfers as Hormuz blockade disrupts trade
Two of three recent LNG cargo operations between Qatar and the UAE utilized damaged tankers to bypass the Strait of Hormuz, incurring an estimated cost of over $1 million per transfer.
Qatar and the UAE are employing emergency ship-to-ship transfers to maintain liquefied natural gas (LNG) shipments as maritime traffic through the Strait of Hormuz remains disrupted by conflict. Ship-tracking data shows three specific cargoes loaded in Qatar and the UAE were moved between vessels off Oman and the UAE in August. Two of these operations involved tankers that had sustained prior damage or been involved in recent incidents. The Al Rekayyat, struck by a projectile near Hormuz in July, transferred its load to the vessel Tembek before delivering the gas to India. GasLog Shanghai, which encountered an incident while leaving Hormuz in late July, moved its cargo to GasLog Savannah off Oman. A third transfer involved ADNOC-controlled Mraweh moving LNG from Das Island to LNG Enugu, with the cargo continuing toward Japan. These operations extend sailing time by up to 35 hours and add more than $1 million per transfer due to technical complexity and cryogenic requirements.
