Greek LNG Carrier Safely Clears Strait of Hormuz After Maritime Incident
Key Takeaways
- •The Gas Log Shanghai, a Greek-owned LNG carrier, experienced an unspecified incident while exiting the Strait of Hormuz but remained stable with its crew safe.
- •UKMTO reported two separate vessel incidents off Oman's coast around the same period, including one tanker hit by an unknown projectile.
- •The Strait of Hormuz facilitates roughly one-fifth of global oil consumption and a substantial portion of international LNG trade.
- •QatarEnergy successfully sent an LNG carrier through the strait and acquired 33 LNG cargoes, indicating plans to increase sales despite an ongoing force majeure at its Ras Laffan gas hub.
- •QatarEnergy indicated in June it could restore half of production at the Ras Laffan facility within one month.
A Greek-owned liquefied natural gas carrier was involved in an unspecified "incident" in the Strait of Hormuz at the end of last week while exiting the waterway, the vessel's owner, Gas Log, confirmed in a statement reported by Reuters.
The vessel is stable and the crew is safe, Gas Log said, without specifying the nature of the incident.
"Gas Log LNG Services immediately activated their emergency plan, notified all relevant authorities, and is currently assessing the condition of the vessel and assure the safety of our people," the Greek shipping company stated.
The vessel, identified as the Gas Log Shanghai, had loaded liquefied gas in Qatar in late July and began its journey out of the Persian Gulf at the end of last week. As of late Sunday, the ship was detected just outside the Strait of Hormuz, according to Reuters, citing ship-tracking data.
The Reuters report also noted that on Saturday, the United Kingdom Maritime Trade Operations (UKMTO) reported two separate incidents involving vessels off the coast of Oman. In one of those incidents, a tanker was "struck by an unknown projectile." An additional report surfaced regarding another incident involving a tanker within the waterway.
The Strait of Hormuz is one of the world's most critical energy chokepoints, through which roughly a fifth of global oil consumption and a significant share of LNG trade passes. Qatar, one of the top LNG exporters globally, relies on the waterway for virtually all of its seaborne gas shipments.
These reports underscore the ongoing risks associated with transiting the Strait of Hormuz. Nevertheless, last week Bloomberg reported that QatarEnergy had successfully dispatched an LNG carrier through the chokepoint — three weeks after one of its own tankers was struck in the strait.
QatarEnergy has also reportedly purchased 33 LNG cargoes, a move interpreted as a signal that the major liquefied gas exporter is seeking to ramp up sales despite a force majeure that remains in effect at its Ras Laffan gas hub. In June, QatarEnergy stated it could restore 50% of production at the facility within one month.
By Irina Slav for Oilprice.com