With geopolitical tensions in the Middle East continuing to make the Suez Canal a risky crossing, almost 20% of all U.S. LNG exports have taken the longer route around southern Africa so far this year, according to data from Kpler.

After conflict in Israel and Gaza sparked off in October, the threat of rocket attacks and boardings while passing through the Bab el-Mandeb Strait between East Africa and the Arabian Peninsula caused most liquefied natural gas shippers to avoid the Suez route. By mid-January, all vessels headed from west to east were diverting around the Cape of Good Hope to avoid the elevated risk.

“The Bab el-Mandeb Strait is an important oil and natural gas chokepoint, accounting for 12% of seaborne oil trade and 8% of LNG trade in the first half of 2023,”...