Qatar and UAE Use STS LNG Transfers to Bypass Hormuz Shipping Crisis

Key Facts

1Three LNG carriers from Qatar and the UAE transferred cargoes to other vessels outside the Strait of Hormuz in August to bypass shipping disruptions.

2The ongoing Hormuz crisis and Qatar's force majeure have pushed Asian spot LNG and European gas prices to multi-year highs.

Amid escalating geopolitical risks threatening vital energy corridors, Qatar and the UAE have begun adopting complex logistical strategies to maintain LNG flows. According to reports, three carriers from both nations transferred their cargoes to other vessels outside the Strait of Hormuz during August to bypass shipping disruptions. This move, involving tankers such as Al Rekayyat and GasLog Shanghai, comes as a direct response to recent security incidents in the Strait, forcing producers to utilize ship-to-ship (STS) transfer tactics previously reserved for crude oil.

The ongoing crisis in the Strait of Hormuz, combined with Qatar's declaration of force majeure, has placed significant pressure on global energy markets, pushing gas prices in Asia and Europe to multi-year highs. Per market data, the logistical complexity of LNG compared to oil makes shuttle-shipping more difficult; however, some transferred cargoes successfully reached destinations in India and Japan by late August. These maneuvers reflect producers' attempts to adapt to the standstill in regular traffic through the Strait to ensure the fulfillment of international contracts.

Based on available data as of September 3, 2026, global gas prices remain supported by supply shortage fears resulting from continued shipping disruptions in key waterways. Traders are closely monitoring developments in the operational capacity of STS transfers as a temporary solution to mitigate the crisis. In the absence of immediate price data for related instruments, the outlook for prices remains bullish as long as security risks persist in the Gulf region.