A liquefied natural gas tanker carrying a shipment for India has exited the Strait of Hormuz, marking the first time since the Iran war began months ago. The tanker was spotted in the last day, loaded with a cargo and heading to western India. This move comes after LNG tankers linked to Adnoc Logistics & Services stopped transmitting signals around Hormuz and within the Persian Gulf as a safety measure.
The Al Hamra tanker was seen leaving Abu Dhabi National Oil Co.'s Das Island export plant in the Persian Gulf, which is behind Hormuz. The vessel loaded its cargo at this plant during its time not sending a signal, according to Kpler. Satellite images show that LNG tankers have been docking at Das Island despite no tankers broadcasting their positions near the plant.
The halt in exports to India has forced the country to procure more shipments from the expensive spot market and curb supplies to some industries. Last year, India received over half of its LNG from Qatar and the UAE, but those flows have essentially halted over the last few months. The decline in deliveries has made it necessary for India to rely on other sources.
The Iran war has been affecting global LNG supply due to the blockade of Hormuz. Vessels continue to face security threats, with most transits taking place without transponders turned on to avoid detection. This has led to a significant reduction in trade through the waterway.
Despite these challenges, Persian Gulf exporters are finding ways to deliver fuel to customers like India. The move shows that they are adapting to the situation and exploring alternative routes to maintain their exports.
The fact that only one tanker has exited Hormuz for India since the war began suggests that the blockade is still having a significant impact on trade in the region. However, this single shipment marks an important step forward for Indian energy imports.
India's reliance on Qatar and the UAE for 50% of its LNG has been severely impacted by the halt in exports from these countries. The country must now find alternative sources to meet its energy demands.
The security threats faced by vessels transiting Hormuz are a major concern for the global LNG market. The blockade has led to a significant increase in costs and uncertainty, making it challenging for exporters to maintain their shipments.
LNG tankers linked to Adnoc have stopped transmitting signals around Hormuz as a safety measure to protect the vessels and their crew. This move highlights the risks faced by these vessels and the need for greater security measures to ensure safe passage.
The move shows Persian Gulf exporters finding ways to deliver fuel to customers despite security threats.
