Trouble in the Red Sea: What’s now for Global LNG Trade?

Lower or delayed LNG shipments to Europe would lead to higher dependence on Russian gas, both piped and LNG (with 5 Charts and a Table)

Important Links (Background):

"War in Yemen & its Impact on Middle East Politics, Shipping, Oil, Gas & the Global Economy"

Impact of attacks on Yemen on oil & LNG markets with Dr. Anas Alhajji

Impact of Houthi Attacks on Ships and the US and UK Attack on the Houthis

The Bab El-Mandeb Strait is a major passage linking East and West. Twelve percent of the global shipping trade passes through this strait. In this article, we highlight the significance of Bab El-Mandeb for the global LNG trade and the potential implications of traffic disruption through the strait.

Last Friday we posted this chart (Figure 1) in the Daily Energy Report. It shows how the number of cargo ships passing Bab El-Mandeb declined by 58% and how the number of LNG-laden tankers stopped passing through the strait.

Figure (1)

On January 15, Qatar energy giant Qatarenergy stopped its LNG tankers before they pass Bab El-Mandeb strait, amid military escalation in this region following US and British attacks on Houthi targets in Yemen. Three Qatari tankers (Al Ghariya, Al Huwaila, and Al Nuaman) were loaded with LNG at Ras Lafan export terminal in Qatar and were sailing towards the Suez Canal but stopped off at the coast of Oman on January 14, according to the EOA’s data from satellite-vessel tracking and was supported by various ship trackers and media outlets.