First LNG tanker crosses Hormuz chokepoint after weeks of disruption: Report

First LNG shipment since the West Asia conflict appears to have crossed the Strait of Hormuz, signalling easing tensions. The tanker Mubaraz heads toward China, raising cautious optimism for global energy flows despite ongoing US-Iran geopolitical uncertainty 

New Delhi: The first liquefied natural gas (LNG) shipment, since the West Asia conflict began on February 28, appeared to have traversed the Strait of Hormuz, signalling a potential breakthrough at a key global energy chokepoint, reports said on Tuesday, citing ship-tracking data. The LNG tanker Mubaraz — which loaded cargo from Abu Dhabi National Oil Co’s Das Island facility in early March — was passing the southern tip of India, according to the ship-tracking data.

The vessel had remained idle inside the Persian Gulf for weeks and had stopped transmitting signals around March 31, before reappearing west of India on Monday. Global energy markets have been closely monitoring traffic through the Strait of Hormuz, through which roughly one-fifth of the world’s LNG supply passes.

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Moreover, ship movements had dropped to near zero over the previous two months amid escalating tensions and reciprocal blockades imposed by Iran and the United States.

At the time, the Mubaraz was signalling a terminal in China as its destination and was estimated to arrive by May 15, the data showed. Earlier in April, tracking data had indicated an empty LNG tanker exiting the Strait of Hormuz. However, no loaded LNG cargo had been confirmed to have made the transit until then.

Several vessels carrying Qatari LNG had approached the strait in recent weeks but had turned back amid persistent geopolitical tensions. Notably, earlier in the month, Indian merchant vessel Green Asha had crossed the Strait of Hormuz and safely reached Jawaharlal Nehru Port Authority (JNPA) in Navi Mumbai with a cargo of 15,400 tonnes of liquefied petroleum gas (LPG), according to the government.

Uncertainty around the geopolitical situation also remained, with US President Donald Trump reportedly not satisfied with Iran’s proposal as it did not address the country’s nuclear programme. “He doesn’t love the proposal,” a US official said.

Trump had discussed the proposal with his top national security aides. The conflict remained at a stalemate, with energy supplies from the region affected. However, Iran has reportedly offered to reopen the Strait of Hormuz if the US lifts its blockade and hostilities end. In addition, oil prices remain elevated, with Brent crude rose 1 per cent to $109.46 per barrel, while US West Texas Intermediate (WTI) gained 1.22 per cent to $97.55.