Shipping through the Strait of Hormuz has nearly come to a halt! The Middle East energy sector is desperately seeking an outlet, and LNG suppliers are unusually resorting to ship-to-ship transfers.

Despite the ongoing game of brinkmanship between the U.S. and Iran over the crucial shipping waterway of the Strait of Hormuz, suppliers are still striving to ensure that fuel can continue to flow from the Persian Gulf to the global market. Reportedly, two liquefied natural gas (LNG) carriers seem to be engaged in ship-to-ship transfer operations just outside the Strait of Hormuz. Images taken by the Copernicus Sentinel-2 satellite last Saturday showed the Enugu LNG carrier moored near the coastal city of Sohar in Oman, anchored parallel to another vessel. This positioning is typically associated with ship-to-ship operations, suggesting that the two vessels may be transferring cargo. According to vessel tracking data, the Enugu has activated its Automatic Identification System (AIS) transponder; the ship is owned by BW Gas LNG Carriers, a subsidiary of BW Group Ltd. The data indicates that the vessel has been maneuvering around the Gulf of Oman in recent days. Moreover, according to TankerTrackers.com Inc., the second vessel has been identified as the Mraweh, owned by the Abu Dhabi National Oil Co. (ADNOC), which has its AIS turned off. Unlike crude oil, LNG ship-to-ship transfers are relatively rare due to the technical challenges involved in maintaining the ultra-cold temperatures required for LNG during transfer. Analysts suggest that if this transfer is confirmed, it will likely become the first known instance of LNG from within the Persian Gulf being transferred to another vessel after exiting the Strait of Hormuz. Go Katayama, chief insights analyst for LNG at market intelligence firm Kpler, noted, This pattern allows shuttle vessels to move cargo from Das Island and transfer it outside the Strait, thereby reducing the exposure to risks that other LNG carriers face. He added, We anticipate that such activities will remain at elevated levels as regional security risks persist. Vessel tracking data shows that the Mraweh was last spotted on July 29, when it was located inside the Persian Gulf, near the western entrance of the Strait of Hormuz. Last month, the vessel had entered the Persian Gulf and turned off its signal transmission while crossing the Strait. A spokesperson for ADNOC Logistics & Services stated that the company would not comment on specific operational matters, including navigation plans and vessel movements. BW Group also declined to comment. Recent ship movement data indicates that although visible LNG shipments through the Strait of Hormuz have essentially been stagnant since Iran attacked a Qatari-owned LNG carrier at the beginning of July, suppliers are still trying to maintain LNG transport through the Strait. According to recent reports, on August 17 local time, Iranian Foreign Ministry spokesperson Nasser Kanani stated that Iran is seriously drafting a maritime route plan with Oman. Kanani mentioned that the drafting process is taking longer due to the complicated security situation caused by U.S. and Israeli actions, as well as the involvement of numerous stakeholders and disruptive factors. Although Iran and Oman are steadily advancing negotiations over the route, the Iranian side has repeatedly made it clear that the reopening of this strategic corridor depends on whether the U.S. can fulfill its obligations outlined in the memorandum. With the 60-day ceasefire agreement between the U.S. and Iran set to expire on Monday, shipping through the Strait of Hormuz has nearly come to a standstill over the weekend, with both parties yet to initiate formal negotiations and no signs of reaching a new agreement. Shipping data firm Kpler reported that only five cargo ships passed through this crucial global energy transport artery on Saturday, with no registered crossing vessels on Sunday; in comparison, 31 vessels crossed the Strait the previous weekend. Analysts point out that the U.S. is demanding that the Strait of Hormuz be returned to the state it was in before the outbreak of the current conflict, while Iran insists on recognition of its dominance over the Strait, which the U.S. is unwilling to accept. The fundamental contradictions in each party's claims over the Strait suggest that, under the current deadlock, the struggle will likely continue for the long term.