Qatar Temporarily Halts Red Sea LNG Transport... Export Disruptions Inevitable

On the 6th (local time), the British destroyer HMS Diamond, conducting the "Operation Prosperity Guardian" in the Red Sea. "Operation Prosperity Guardian" is a multinational maritime security operation established by the United States and its allies in response to attacks on civilian vessels in the Red Sea by Yemeni Houthi rebels, who claim to support the Palestinian armed group Hamas. [Image source=Yonhap News]

Security concerns between Yemen's Houthi rebels and US and UK forces are disrupting liquefied natural gas (LNG) transportation in the Red Sea.

On the 15th (local time), major foreign media reported that QatarEnergy, Qatar's state-owned energy company, decided to temporarily suspend LNG shipments in the Red Sea for security reasons.

Recently, the Houthi rebels in Yemen attacked commercial vessels in the Red Sea, and in response, US and UK forces conducted airstrikes on Houthi bases within Yemen, raising concerns about the safety of maritime routes in the Red Sea.

If QatarEnergy temporarily halts operations on the Red Sea route, exports to European countries via the Suez Canal are inevitably expected to face disruptions.

A source explained, "If the Red Sea route remains unsafe, LNG will be transported via a detour around the Cape of Good Hope in South Africa."

According to vessel tracking data from the London Stock Exchange Group (LSEG), three carriers?Al Gariya, Al Huwayla, and Al Nuaman?carrying LNG from Ras Laffan in Qatar and heading through the Red Sea to the Suez Canal temporarily suspended operations yesterday in the waters off Oman.

However, the source added that Qatar's LNG production will continue.

Qatar is one of the world's top three LNG exporters alongside the United States and Australia. As of 2021, its largest export destinations were South Korea (12%), India (11%), China (10%), and Japan (10%).

Meanwhile, the Houthi rebels, supported by Iran, have attacked vessels passing through the Red Sea while backing Hamas in the Israel-Hamas conflict. In response, the US formed a multinational force and conducted airstrikes on rebel bases in Yemen on the 12th and 13th.