The failed crossing of the tankers was similar to an earlier attempt by two ultra-large Cosco container vessels

Today -on Monday, two Qatari liquefied natural gas (LNG) tankers aborted their attempt to cross the Strait of Hormuz, dashing hopes for the first LNG shipments out of the Gulf since the war began .Both the Marshall Islands-flagged Rasheeda (IMO 9443413, MMSI 538003362) and the Bahamian-flagged Al Daayen (IMO 9325702, MMSI 311133000) turned back before completing their transit of the narrow waterway this afternoon. The tankers have now switched Pakistan as their next destination.

According to ship-tracking data compiled by Bloomberg, the Al Daayen and Rasheeda had made a U-turn away from the Strait of Hormuz after heading east towards the waterway in an attempt to export fuels from the Persian Gulf for the first time since the Iran-Iraq war began. Each had loaded LNG from Qatar’s export plant in late February, according to ship data.

 The impact of Iran's blockade of Hormuz

The impact of Iran's blockade of Hormuz is highlighted by this reversal. On Monday, a senior Iranian official stated that, although Tehran was considering a peace proposal, the Strait of Hormuz would not be reopened as part of any temporary agreement. Earlier in the day, Iran had attacked US forces on Kuwait's Bubiyan Island, while the UAE had intercepted 12 ballistic missiles, two cruise missiles and 19 drones.

A fifth of global LNG supply is accounted for by Qatar,

About a fifth of global LNG supply is accounted for by Qatar, and an estimated 17 per cent of its export capacity has already been knocked offline for about five years by Iranian strikes on its infrastructure. A sustained closure of the Strait of Hormuz to Qatari tankers would further constrain the already tight global LNG market, with repercussions for buyers in Europe and Asia. Qatar is expected to lose about $20 billion annually due to limited production.

The tankers' failed crossing 

The tankers' failed crossing was similar to an earlier attempt by two Cosco ultra-large container vessels – the CSCL Indian Ocean and the CSCL Arctic Ocean. On 30 March, both successfully made it across the strait. This was after they had to abandon their attempt on 27 March. This was the first time that a major container ship had been able to pass through since the conflict began on 28 February. Iran has permitted passage for vessels from countries it designates as 'friendly', including China, India, Pakistan and Russia.

Related : An Iranian drone strike has hit MSC Ishyka, a vessel linked to Israel.

Source  Image : VesselFinder

Asia is a leading importer of LNG.

At a time when many countries in Asia, which are leading importers of LNG, are in the throes of a serious fuel crisis, the turnaround of Qatari tankers is happening. Almost half of India’s LNG intake is tied to Qatari supply. A significant proportion of these volumes are subject to long-term contractual obligations with importers, including Petronet LNG, which operates substantial receiving terminals on India's west coast. Reports suggest that India has instructed its industry leaders to reduce gas supplies by 10–20% following the loss of Qatari supplies.

Around 20% of the world's daily LNG supply has been delayed

Approximately 20% of the world's daily supply of liquefied natural gas has been held up due to the closure of the Strait of Hormuz. Furthermore, Iranian drone and missile strikes on energy infrastructure in the region have damaged Qatar’s vital Ras Laffan LNG liquefaction complex.

The damage to the Ras Laffan LNG complex 

QatarEnergy, Qatar’s state-owned firm, expects the damage to the Ras Laffan LNG complex — the world’s largest single LNG production facility — to cost it approximately $20 billion per year in lost revenue, and to take up to five years to repair.The company has been forced to invoke force majeure on some long-term LNG contracts for up to five years.The subsequent shortage of LNG has driven up gas prices in Asia and Europe to their highest levels in three years, raising concerns about replenishing gas inventories in Europe ahead of next winter.

#QatarEnergy #Ras Laffan LNG # Two Qatari tankers #Al Daayen #Rasheeda #Hormuz #Persian Gulf# Kuwait's Bubiyan Island#Cosco