LNG shipments through the Strait of Hormuz rose to 31 tankers in October, though Qatari export volumes remain well below pre-war levels as the market braces for a potentially extreme winter.
LNG tanker traffic through Hormuz rose to 31 ships in October, the most since February, up from 27 in September, signaling recovering Gulf supply. However, Qatar's October exports of 2.7 million tons remain far below February's near 6.2 million tons, and Rystad warns of an extreme Northern Hemisphere winter, both of which argue against a sustained price decline.
Qatar became the largest buyer of US liquefied gas after sealing two long-term deals with Cheniere for up to 4 million tons per year from Sabine Pass and Corpus Christi, with deliveries from 2031 through 2054. This locks in very long-dated export demand, but deliveries start only in 2031, limiting near-term price impact.
LNG tanker traffic through the Strait of Hormuz reached 31 ships in October, up from 27 in September, marking the highest volume since February. Despite this recovery, Qatari exports remain at 2.7 million tons, significantly below the 6.2 million tons recorded in February. Analysts at Rystad Energy warn that an extreme Northern Hemisphere winter could still drive gas prices higher despite the improved flow.
Higher traffic adds supply, which is bearish, but Qatari exports remain far below pre-war levels and analysts warn of an extreme winter, so the price effect may be limited.
Cheniere will sell Qatar up to 4 million tons of LNG per year from its Sabine Pass and Corpus Christi export facilities, with deliveries starting in 2031 and running through 2054.