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QatarEnergy halts Red Sea LNG shipping amid attacks, seeking security advice

Tuesday, 16 January 2024


DOHA/SINGAPORE, Jan 15 (Reuters): QatarEnergy, the world's second largest exporter of liquefied natural gas, has stopped sending tankers via the Red Sea although production continues, a senior source with direct knowledge of the matter told Reuters on Monday.
Yemen's Iran-backed Houthi group has since November been attacking vessels in the Red Sea, part of a route that accounts for about 12 per cent of the world's shipping traffic, in what they say is an effort to support Palestinians in the war with Israel.
At least four tankers used to carry Qatari LNG were held up over the weekend after U.S. and British forces responded by carrying out dozens of air and sea strikes on Houthi targets in Yemen.
The Al Ghariya, Al Huwaila and Al Nuaman had loaded LNG at Ras Laffan in Qatar and were heading to the Suez Canal but stopped off the coast of Oman on Jan. 14, according to LSEG shiptracking data. The Al Rekayyat, which was sailing back to Qatar, stopped along its route on Jan. 13 in the Red Sea.
"It is a pause to get security advice, if passing (through the) Red Sea remains unsafe we will go via the Cape," the source said. "It is not a halt of production."
The Qatari government's International Media Office and QatarEnergy did not immediately respond to requests for comment.
The alternative route to Europe round the Cape of Good Hope could add around 9 days to the 18-day voyage from Qatar, said ICIS LNG analyst Alex Froley.
A trader calculated that could add about 1-1.30 euros per megawatt hour (MWh) to the price of the cargo, although it would be partially offset by not paying Suez Canal fees.
"Qatar will just take the long route via Cape of Good Hope, which will result in delivery delays but nothing dramatic for European balances," another trading source said on Monday.
Attacks by Yemen's Houthi militants on ships in the Red Sea are disrupting maritime trade through the Suez Canal, with some vessels re-routing to a much longer East-West route via the southern tip of Africa.
Attacks by Yemen's Houthi militants on ships in the Red Sea are disrupting maritime trade through the Suez Canal, with some vessels re-routing to a much longer East-West route via the southern tip of Africa.
Shipowners and managers of the four vessels including Teekay Shipping Glasgow, Pronav Ship Management, Nakilat Shipping Qatar Ltd and Shell's shipping and chartering arm STASCO also did not immediately respond to requests for comment.
Qatar shipped more than 75 million tonnes (MMt) of LNG in 2023, according to LSEG data, including 14 MMt to buyers in Europe and 56.4 MMt to Asia.