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Shell swaps Kuwait, Dubai LNG deliveries amid spat

08 Jun 2017 17:14 (+01:00 GMT)
Shell swaps Kuwait, Dubai LNG deliveries amid spat

London, 8 June (Argus) — Shell has swapped two of its Middle East LNG deliveries amid the banning of LNG carriers originating from Qatar at Dubai's 5mn t/yr Jebel Ali terminal.

Shell's 173,400m³ Maran Gas Amphipolis was due to deliver US LNG to Kuwait's 5.7mn t/yr Al-Ahmadi port this week, but was diverted to Dubai on 6 June after the port of Jebel Ali banned the arrival of vessels originating from Qatar amid a political dispute between Qatar and Gulf Co-operation Council (GCC) members Saudi Arabia, Bahrain and the UAE as well as north African neighbour Egypt.

The delivery on the Maran Gas Amphipolis, which loaded at the 25mn t/yr Sabine Pass terminal in Louisiana on 9 May and so is not subject to the port ban, was probably swapped with a Qatari delivery. Shell's 145,700m³ Maran Gas Asclepius has since loaded at Qatar's 77mn t/yr Ras Laffan facility and delivered to Kuwait today.

This appears to be the first diversion of an LNG delivery after regional neighbours severed diplomatic ties with Doha on 5 June.

"This dispute is a timely reminder of the value of the diversity and flexibility of supply that destination–free US exports bring to individual buyers — and the LNG trade in general," US LNG producer Cheniere Energy said this week.

"As the only current supplier of US LNG, Cheniere will continue to provide reliable cargoes of US LNG to customers and countries around the world," the firm said.