Shipments of liquefied natural gas (LNG) through the Strait of Hormuz have experienced a resurgence beginning in September, as producers in the region work to replenish supplies for energy-deprived customers. Ship-tracking data indicates that at least three LNG shipments have departed the crucial waterway since late last week. Despite this rise in activity, total flows remain more than 75% below the levels seen before the onset of the Iran conflict in late February.
The market is attentively monitoring these shipments for any signs of relief from the current supply crunch that drove LNG prices in Europe and Asia to their highest levels since late 2022. A sustained increase in shipments could significantly mitigate rising costs just ahead of the Northern Hemisphere winter, a time that typically sees a surge in heating demand.
However, the heightened shipping traffic persists alongside ongoing risks, as highlighted by recent reports of maritime incidents. Notably, UK Maritime Trade Operations announced an incident involving a tanker that was reportedly struck by an unidentified projectile within the Strait on October 4.
