The UAE is continuing to ship liquefied natural gas (LNG) through the Strait of Hormuz despite ongoing security concerns, a development that Oilprice.com says reflects both the strategic importance of Gulf energy exports and sustained global demand for LNG.
The analysis notes that an ADNOC LNG tanker recently emerged in the Persian Gulf and successfully transited the Strait of Hormuz. The vessel reportedly switched off its location tracking systems during the passage, a move Oilprice.com says was likely intended to reduce the risk of detection while navigating the increasingly sensitive waterway.
The publication argues that the shipment demonstrates the willingness of Gulf exporters to continue operating despite heightened security risks following recent attacks on commercial shipping.
According to the analysis, tanker operators have become increasingly cautious after Iranian forces reportedly attacked a Qatari LNG carrier earlier this month, an incident that further complicated navigation through the strategic maritime corridor.
Despite those concerns, Oilprice.com notes that ADNOC has continued loading cargoes from its Das Island LNG export facility. Bloomberg reported that another LNG carrier was being loaded at the terminal late last week, suggesting exports have continued despite the uncertain security environment.
The analysis argues that these developments illustrate both the fragile operating conditions facing Gulf oil and gas exporters and the strength of international demand for LNG supplies.
Oilprice.com also points to Abu Dhabi's efforts to expand its LNG capabilities. Earlier this month, ADNOC Logistics and Services placed a $900 million order for four new LNG carriers as part of plans to strengthen its shipping fleet and capitalise on growing global demand for liquefied natural gas.
In addition, the publication notes that eight more LNG carriers, representing a combined investment of approximately $2.5 billion, are currently under construction at South Korea's Samsung Heavy Industries and Hanwha Ocean. The vessels are scheduled for delivery beginning in 2028 and have already been secured under 20-year time-charter agreements with ADNOC Gas.
ADNOC has also stepped up LNG exports after neighbouring Qatar declared force majeure at its Ras Laffan LNG hub, creating an opportunity for the Emirati producer to help meet international demand.
The analysis also highlights the commercial pressures emerging on the buyer side of the market.
LNG importers have been seeking lower prices from suppliers in Qatar and the UAE, arguing that the security environment in the Persian Gulf has changed significantly following U.S. and Israeli military strikes against Iran earlier this year.
The publication says buyers contend that increased geopolitical risks have raised insurance premiums for LNG shipments transiting the Strait of Hormuz, increasing overall transportation costs. As a result, importers argue that producers should offset those higher costs by reducing LNG prices.
By Sabina Mammadli
