Pakistan negotiated with Iran to secure safe passage for the liquefied natural gas carrier Al Mayeda before it was attacked near the Strait of Hormuz on Friday. The Marshall Islands-flagged vessel, loaded with LNG from Qatar, came under fire. Iranian authorities were understood to have provided a green light hours earlier.
The ship turned around and headed into the Persian Gulf. Indian Shipping Minister Sarbananda Sonowal confirmed all 25 crew members, including six Indian nationals, were safe. Qatar Gas Transport Company Ltd., known as Nakilit, confirmed the vessel was hit but said it remained operational.
The incident underscores the continued risk for vessels navigating around Hormuz and poses a fresh challenge for Pakistan, which has grappled with an energy shortfall. Without the LNG shipment, Pakistan could be forced to turn to the spot market, where prices are more than three times pre-war levels. Pakistan, apparently benefiting from its ties with Iran and its role as a mediator, has communicated with Iranian authorities over the safety of several other Qatari LNG shipments over the past month that crossed successfully into the Gulf of Oman.
LNG flows through Hormuz held steady in October at about 30% of pre-war levels. Qatar has been sending LNG through the waterway consistently since September, including on older vessels that can help reduce additional insurance costs associated with risky voyages.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing