A liquefied natural gas tanker loaded in Qatar crossed the Strait of Hormuz on Thursday amid signs of resumed shipping traffic after the US-Iran framework agreement took effect.
Three tankers carrying oil had also crossed the waterway as of 2pm UAE time, according to data from Kpler.
The Mraikh, carrying LNG from Ras Laffan refinery, was heading towards Port Qasim in Karachi, Pakistan. It was one of five LNG tankers that had been trapped in the Arabian Gulf.
LNG tankers have been the slowest to move. They are among the most expensive ships afloat and carry high insurance risk, giving them the lowest risk tolerance of any class. Oil tankers and dry bulk ships are expected to recover first, followed by container ships and finally LNG tankers, Kpler said in an assessment in April.
The Mraikh's crossing on Thursday follows that of the Indian tanker Disha, which passed through the waterway on Sunday along a route approved by the International Maritime Organisation. The crossing was the vessel's first in three months and made the Disha the only large energy-laden vessel to pass through Hormuz that day.
The US and Iran have signed a framework agreement to end their conflict, which has killed thousands of people across the Middle East since it broke out on February 28. The war has also wrought havoc on global energy markets, with Brent crude prices soaring to almost $120 a barrel in March.
Shipping traffic through the Strait of Hormuz came to a virtual standstill during the conflict, as Iran and the US each imposed blockades in the waterway. Only a few vessels crossed the strait each day as the war raged, compared with more than 100 before it broke out.
About 20 per cent of global LNG usually crosses the Strait of Hormuz, with the UAE and Qatar being the main producers in the region.
Last year, almost 23 per cent of LNG from Qatar and the UAE flowed to China, 16.6 per cent to India, 9.3 per cent to Taiwan, 8.2 per cent to South Korea, 8.2 per cent to Pakistan and 4.9 per cent to Japan, according to Rystad Energy.
Qatar hopes to restore most of its export capacity within two months of the Strait of Hormuz being reopened, Bloomberg reported on Tuesday. This will require the country to secure enough vessels to carry its shipments, at a time when no empty LNG tankers have entered the Arabian Gulf in almost four months.
Other crossings
Several other ships have begun to cross the strait since the framework agreement took effect. Three tankers carrying Saudi oil made the journey on Thursday, Kpler data shows.
Almost 500 ships are believed to remain trapped in the Gulf, with most vessels' owners preferring to exercise caution and wait for clarity before making the crossing.
Fertiliser shipments, which have fallen by 11 per cent year on year since the start of the war, are also expected to rise.
At least 30 ships laden with fertiliser are currently in the Arabian Gulf, while 70 more vessels could be loaded with the cargo, according to Bimco.
Under normal conditions, 16 per cent of global fertiliser supplies cross the Strait of Hormuz.
“The closure of the Strait of Hormuz has restricted fertiliser exports from the Arabian Gulf, tightening the global supply and increasing prices. The ceasefire agreement between the US and Iran could lead to a rebound in shipments,” said Filipe Gouveia, shipping analysis manager at Bimco.
Ships are getting ready to cross the strait, but the flow of oil through the waterway is only expected to recover to about 70 per cent of prewar levels, because regional producers are searching for alternative routes to export their crude, according to an analysis by Goldman Sachs.
“This normalisation in Gulf exports to prewar levels might be achieved with a 13 million barrel a day increase in Hormuz flows from current levels,” Goldman Sachs said.
Currently, an estimated 1.3 million barrels of crude cross the strait each day, along with 1.6 million barrels from the Gulf of Oman. Meanwhile, 7.5 million barrels a day move through the ports of Fujairah, Yanbu and Ceyhan, which bypass Hormuz, Goldman Sachs said.
