LNG Market Alert: Persian Gulf - Strait of Hormuz Tensions & Regional LNG Traffic
Geopolitical tensions surged sharply last week as conflict escalated between Iran and Israel, centering around the strategically crucial Strait of Hormuz. Concerns heightened globally when Iran's parliament signaled potential attempts to control or block the strait, a critical maritime chokepoint through which over 20% of the world's LNG exports transit.
SynMax Leviaton’s LNG vessel tracking platform recorded heightened activity between June 15 and June 23, 2025, with LNG vessels traversing the region on high alert amid escalating security threats. Notably, around June 15, several vessels awaiting cargo from QatarEnergy's Ras Laffan terminal displayed unusual AIS signals near Bidkhun, Iran. This anomaly indicates potential regional electromagnetic interference (EMI), possibly resulting from deliberate AIS interference or spoofing, causing vessel positions to appear incorrectly over land towards Iranian anchorages.
Similar AIS irregularities affected two vessels near UAE’s Jebel Ali regasification terminal, erroneously placing them near Bandar Abbas, Iran.
Reacting proactively to rising tensions, QatarEnergy issued new operational directives, instructing LNG vessels to delay entering the Strait of Hormuz until just one day before scheduled loading. As of now, no significant disruptions in LNG flow have been observed.
Along with two liquefaction terminals, regasification terminals such as Jebel Ali, Al Ruwais, and the Khor Fakkan reload facility in the UAE are also vital to the regional LNG supply chain. Additionally, near the mouth of the Persian Gulf, is Kuwait’s Mina Al Ahmadi terminal.
The global market impact is particularly pronounced given Qatar’s pivotal role in LNG exports. As the world's third-largest LNG exporter—trailing only the United States and Australia—Qatar ships to major importing nations including China, India, South Korea, and Pakistan in Asia.
Looking forward, the region's LNG significance will further amplify with ongoing infrastructure expansions. Key LNG infrastructure in the region, tracked closely via Vulcan imagery, includes two major liquefaction terminals: Qatar’s ambitious North Field Expansion, projected as the world's largest LNG liquefaction facility, will add an additional 33 MTPA upon reaching full capacity in 2027. Concurrently, the UAE’s Ruwais LNG liquefaction project (9.8 MTPA), which achieved FID last year and has commenced initial ground work —as confirmed via SynMax Vulcan’s satellite imagery—will also boost regional LNG production capacities.
SynMax Leviaton along with Vulcan’s satellite image monitoring capabilities will continue monitoring developments in the region as the market navigates these evolving risks.