Traders diverted at least six cargoes of liquefied natural gas that were on course for Asia to Europe earlier this month, drawn by higher European prices and amid weak Asian demand…
Traders diverted at least six cargoes of liquefied natural gas that were on course for Asia to Europe earlier this month, drawn by higher European prices and amid weak Asian demand, according to analysts and shipping data.
The diverted cargoes could help meet additional European demand as countries seek to replace piped Russian gas after the Ukraine transit deal expired on Jan. 1, while weather forecasts point to lower temperatures in northwest Europe.
The vessels had loaded in the U.S. and were initially destined for China, South Korea, Thailand and Singapore, data from analytics firm Kpler showed. The vessels were then diverted in the Atlantic Ocean between Jan. 8 and Jan. 14, changing course for Europe.
"The diversions are happening because Asian prices aren't keeping enough of a premium to European prices to attract cargoes," said Martin Senior, head of LNG pricing at Argus, adding that nearly all Atlantic basin cargoes are heading towards Europe.
Asian spot LNG LNG-AS has slipped for two consecutive weeks, as ample inventory levels in east Asia and spot prices trading at around $14 per million British thermal units (mmBtu), seen as too high for some buyers, curb demand. Prices have eased nearly 5% since the
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