EnA cutting of diplomatic ties between six countries and Qatar, as outlined in Panjiva research of June 5, may bring an opportunity for liquefied natural gas exporters from other countries. The stock price of Nakilat, the quoted Qatari gas tanker operator, has fallen by 14.6% since the issue emerged suggesting traders see a potential risk to Qatari gas exporters.
Logistically that may be overstated. While Qatari tankers have lost access to bunker fuel facilities in Fujairah according to the port authority, their access to waterways may be unimpeded. Shipments via the Straits of Hormuz should still be available via Iranian waters. Furthermore, while Egypt is one of the participants in the cutting of ties, access to the Suez Canal cannot be impeded under the Constantinople Treaty. Qatargas has also committed to continued supplies to its customers, Bloomberg reports.
U.S. importers may not be able to take advantage of any opportunities even if there are shortages resulting from Qatargas being cut-off from the market. Panjiva data shows that U.S. exports, led by Cheniere Energy, climbed 7.6-fold on a year earlier in the three months to April 30 in dollar terms. However, production is limited to facilities that are already online, which have averaged 2.3 bcm (billion cubic meters) per month of exports since the start of the year.
Source: Panjiva
