LNG Market Faces Disruption as Red Sea Closure Forces Risky Detours

The last LNG carrier that passed the Bab el Mandeb strait off the Yemeni coast did so in February. Since that month, there has been no LNG traffic via the once major energy chokepoint as vessels diverted around Africa—or changed destinations entirely. When the Houthi attacks on ships traversing the Red Sea prompted the redirection of maritime trade in the area, multiple analysts tried to gauge the significance of the events. Most seemed to agree that the rerouting of maritime transport would make goods more expensive and deliveries slower.…