Key insights
- Pakistan is negotiating with Iran to allow Qatari LNG tankers through the Strait of Hormuz to alleviate supply shortages. One tanker successfully navigated the route, but the future of these shipments remains uncertain. Disruption in LNG transit through Hormuz has caused prices to surge and Asian buyers to seek alternative supplies. This event highlights geopolitical risks to global energy markets.
Investing.com -- Pakistan has been in talks with Iran over allowing a limited number of Qatari liquefied natural gas tankers through the Strait of Hormuz, as one Qatari vessel successfully navigated the waterway on Sunday, Bloomberg reported.
The Al Kharaitiyat departed Qatar’s Ras Laffan terminal earlier this month and was tracked in the Gulf of Oman on Sunday, appearing to have taken a northern route along the Iranian coastline through the strait, the report said, citing ship-tracking data.
The sailing is part of Pakistan’s negotiations with Iran to secure additional Qatari LNG cargoes through the strait to meet urgent demand, Bloomberg said, citing people who asked not to be identified because the discussions are private.
Pakistan had recently opted against purchasing expensive spot-market LNG, betting it could unlock Middle East supply instead, according to the report.
Whether further cargoes will follow remains unclear. The single sailing is a fraction of the roughly three LNG shipments that transited Hormuz daily before hostilities broke out at the end of February.
Qatar, one of the world’s largest LNG producers, has been unable to move gas exports out of the Persian Gulf since then, while prices have surged and Asian buyers have scrambled for alternative supply.
Two LNG tankers from Abu Dhabi National Oil Co.’s export plant that have also traversed the strait since the conflict began.
Earlier Qatari attempts to push cargoes through Hormuz had ended with tankers turning back.