LNG Tanker Nears Strait of Hormuz Amidst US-Iran Peace Deal

An LNG tanker loaded in Qatar is approaching the Strait of Hormuz, signalling a possible revival in traffic after a temporary US-Iran peace deal. The vessel, Mraikh, has been stranded in the Persian Gulf since February and is now headed toward Pakistan. The move comes as Trump announced a deal to reopen Hormuz, whose closure had disrupted nearly 20% of global LNG supplies.

A liquefied natural gas (LNG) tanker that loaded in Qatar is nearing the Strait of Hormuz, a hint that traffic may increase after an interim US-Iran peace deal went into effect, reported Bloomberg reported citing ship-tracking data.

The Mraikh, which picked up a shipment earlier this month, is heading toward the chokepoint after being stuck in the Persian Gulf since February, according to the data cited by Bloomberg. "The vessel, which is chartered by QatarEnergy, is signaling Pakistan’s Port Qasim as its next location."

ALSO READ | US-Iran deal takes 'immediate effect' after both sides sign, Pakistan PM Shehbaz Sharif says

US President Donald Trump announced that he had signed an agreement with Iran aimed at quickly reopening the strategically important Strait of Hormuz. The waterway’s closure had restricted access to nearly 20% of global LNG supplies, with only a limited number of cargoes moving through on ships that either switched off their tracking systems to conceal their whereabouts or received clearance from Tehran.

Qatar is aiming to restore most of its export capacity within two months of Hormuz reopening, Bloomberg reported on Tuesday. That will require securing vessels to lift shipments — although no empty LNG tanker has sailed into the Persian Gulf since the conflict began in late February.

Live Events

ALSO READ | What's in Trump's deal for Tehran? The 14-point US-Iran pact as read by American official

The shipment will also be a relief for Pakistan, which is grappling with a gas crunch since its supply from Qatar was cut off. The South Asian nation is seeking an LNG cargo in a tender, which it may cancel if the Mraikh arrives.

Pakistan had previously negotiated with Tehran for the safe passage of LNG tankers in order to ease its energy shortfall. It isn’t immediately clear if the Mraikh is part of such an agreement.

Earlier this week, an LNG carrier, chartered by an Indian firm, safely transited through the Strait of Hormuz-the first Indian LNG tanker to cross the war-hit narrow shipping lane since the war in West Asia broke out more than three and a half months back.

(With inputs from Bloomberg)