Key facts
- The UAE continues to export liquefied natural gas despite threats in the Strait of Hormuz.
- An ADNOC LNG tanker was observed exiting the Strait of Hormuz with its location devices deactivated.
- ADNOC is loading another LNG carrier at its Das Island facility.
- ADNOC recently ordered four new LNG carriers and has eight more under construction.
- LNG importers are seeking lower prices, citing increased geopolitical risk in the Persian Gulf.
The United Arab Emirates is maintaining its liquefied natural gas exports despite heightened risks in the Strait of Hormuz, a critical chokepoint for global energy shipments. An ADNOC LNG tanker was reportedly seen exiting the Persian Gulf with its location devices turned off to avoid detection, signaling the ongoing challenges faced by energy exporters in the region.
This development follows an incident earlier this month where Iranian forces reportedly attacked a Qatari LNG carrier, which has increased caution among energy shippers. ADNOC is also actively loading another LNG carrier at its Das Island facility, underscoring the continued demand for the commodity.
ADNOC has been significantly expanding its presence in the liquefied gas market, stepping in to increase exports as Qatar faced force majeure declarations. The company's commitment to growth is further evidenced by a $900 million order for four new LNG carriers and eight additional vessels currently under construction, with deliveries starting in 2028.
Despite these efforts, LNG importers are attempting to negotiate lower prices, arguing that the increased geopolitical risk in the Persian Gulf should be reflected in insurance costs and, consequently, the price of gas.