The UAE keeps shipping liquefied natural gas out of the Persian Gulf despite the threat of strikes in the Strait of Hormuz. Bloomberg reported that an ADNOC tanker cleared the strait with its location devices reportedly switched off, and that a second carrier loaded at Das Island late last week. ADNOC is expanding its LNG fleet while Qatar’s Ras Laffan hub sits under force majeure.
An ADNOC LNG tanker appeared in the Persian Gulf earlier today and exited the Strait of Hormuz, reportedly with its location devices turned off to avoid detection, according to a Bloomberg report. The UAE therefore continues to export liquefied natural gas even as the waterway stays exposed to strikes.
Bloomberg noted that Iranian forces attacked a Qatari LNG carrier earlier this month, which sapped appetite for risky moves among energy shippers. The publication also said ADNOC was loading another LNG carrier at its Das Island facility at the end of last week.
These developments point to both the precarious position of Gulf oil and gas exporters and the strength of demand for their energy commodities. ADNOC has been especially active in liquefied gas, stepping in to boost its exports as neighbor Qatar had to declare force majeure on its Ras Laffan LNG hub.
ADNOC builds out its LNG carrier fleet
Earlier this month, ADNOC Logistics and Services placed a $900-million order for four newbuild LNG carriers to expand its fleet as Abu Dhabi’s national oil company seeks to seize the global rise in LNG demand. The Abu Dhabi firm also has eight LNG carriers under construction at Samsung Heavy Industries and Hanwha Ocean, with an investment of a total of $2.5 billion. Those vessels are scheduled for delivery from 2028 and are all contracted on 20-year time charters to ADNOC Gas.
Importers press Gulf sellers on price
Meanwhile, LNG importers have tried to pressure Qatar and the UAE into asking for lower prices for their liquefied gas. Buyers of the commodity argue that the Persian Gulf has become a lot riskier than it was before the U.S. and Israel attacked Iran at the end of February, and that this risk will be reflected in the price shippers pay for insurance. By that logic, the sellers need to lower their prices.
Source: Oilprice.com
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