HSE & Sustainability

LNG Carriers Divert From Suez Canal for Longer Routes Amid Red Sea Attacks

Attacks by the Iran-backed Houthi militants on ships passing through the Bab al-Mandab Strait and the Red Sea have surged recently, adding security risks to ships passing through the Suez Canal.

LNG Tanker passing through Suez Canal
An LNG tanker passes through the Suez Canal Bridge with a pilot boat in the foreground.
Source: HHakim/Getty Images

At least three LNG carriers looking to transit the Suez Canal have diverted to longer routes as attacks by Houthi rebels in the region pushed a change in transit flows, including a tanker carrying a shipment from the Freeport LNG terminal in Texas, according to S&P Global Commodities at Sea (CAS) data.

Attacks by the Iran-backed Houthi militants on ships passing through the Bab al-Mandab Strait and the Red Sea have surged recently, adding security risks to ships passing through the Suez Canal.

The risk of disruptions at the Suez Canal for the global LNG market was relatively limited because of ample supply availability, according to analysts. Disruptions could provide added incentive for US LNG cargoes to remain in the Atlantic Basin at a time when most US volumes are already flowing to Europe.

Navigation through the Suez Canal is flowing as normal and the Suez Canal Authority is watching the ongoing tensions in the Red Sea and assessing the effect on shipping, the SCA said in a 17 December statement.

The Celsius Copenhagen, chartered by Gunvor, departed the Freeport LNG export terminal in Texas on 25 November and crossed the Suez Canal southbound on 13 December, according to CAS data. However, the carrier only made it as far south as Jubayt, Sudan, before turning around on 15 December to avoid the Bab al-Mandab Strait. The Celsius Copenhagen was floating south of the canal 18 December as it awaited passage.

Gunvor did not respond to requests for comment 18 December.

Other Celsius ships are choosing to avoid the Strait, with the Celsius Charlotte diverting on 18 December in the Arabian Sea. The unladen carrier departed the Yun-An LNG Terminal in Taiwan on 6 December, and was listed as for orders 18 December.

Additionally, the Celsius Geneva also diverted its route to avoid the Red Sea, instead heading towards the Cape of Good Hope on 15 December.

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