LNG Suppliers Divert Tankers Amid Heightened Risk in Red Sea

The heightened risk of attacks from Houthi militants in the Red Sea has prompted LNG suppliers such as Qatar and Russia to divert their tankers away from the region. This has caused a reshaping of shipping routes and raised concerns about the impact on the LNG industry. Qatar’s Prime Minister warned of the risk of further escalation in the region due to recent attacks by the US and its allies on Houthi positions in Yemen.

As a result, Qatar diverted three LNG tankers bound for Europe away from the Red Sea towards southern Africa or Southeast Asia, while Russia also diverted one of its tankers from the northern entrance of the Suez Canal. The US has warned shipowners to avoid the Red Sea following the attack in Yemen, further complicating shipping routes in the region.

The longer LNG shipments will increase freight costs, but they are not expected to cause shortages in Europe due to high supplies and subdued industrial demand. Despite the disruptions, alternative routes via southern Africa or Southeast Asia have been identified for LNG transportation. The situation in the Red Sea has significantly impacted the shipping industry and raised concerns about the future of international trade in the region.

Source .