Qatar Energy pauses LNG Red Sea shipping amid attacks

Qatar Energy, The world’s second largest exporter of liquefied natural gas (LNG), paused Red Sea navigation of LNG shipments, a senior source familiar with the matter told Reuters on Monday.

The decision comes in light of the US and UK attacks on Yemen.

The attacks have been affecting around 12 per cent of the world’s shipping traffic, forcing vessels to travel via the Cape of Good Hope.

Reuters reported that at least four tankers carrying Qatari LNG have been held up over the weekend.

Al Ghariya, Al Huwaila, and Al Nuaman have loaded LNG at Ras Laffan in Qatar and were on their way to the Suez Canal.

However, they stopped off the coast of Oman on Sunday, according to LSEG shiptracking data.

The fourth ship, Al Rekayyat, was sailing back to Qatar, but stopped along its route in the Red Sea on Saturday.

“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.”

However, the alternative route to Europe round the Cape of Good Hope adds around nine days to the 18-day voyage from Qatar, said ICIS LNG analyst Alex Froley.

According to Reuters, this could add up to one-1.30 euros per megawatt hour to the price of the cargo, which might be partially balanced by not paying the Suez Canal fees.