QatarEnergy is offering for lease 10 liquefied natural gas tankers currently located outside the Strait of Hormuz, two industry sources told Reuters.
The world’s second-largest LNG exporter has announced a production halt at its 77 million ton per annum (mtpa) facility, and shipping rates have soared as the U.S.-Iran conflict heads into its second week.
Last Wednesday (March 4), Qatar Energy declared force majeure on LNG shipments. This production halt has further intensified competition for LNG supplies in the Atlantic and Pacific basins, pushing up natural gas prices and LNG freight rates in Europe and Asia to multi-year highs.
Qatari Energy Minister Saad al-Kaabi told the Financial Times it would take “weeks to months” to return to normal deliveries, even if the war ended today. The company declared force majeure on LNG shipments on Wednesday.
The production halt has intensified competition between the Atlantic and Pacific basins for LNG cargoes, sending European and Asian gas prices and LNG freight rates to multi-year highs.
“All of the tankers on offer are located outside the Strait of Hormuz, so that any safety issues can be avoided,” said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence. Two of the tankers are due to deliver next week in Europe. This implies that these vessels are not expected to be back in service for QatarEnergy anytime soon, indicating a quick and full restart is becoming increasingly unlikely,” he added.
Source From:Reuters