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Natural gas trains to Asia are changing the midway route to cater to European consumers who want to pay more, as prices in the region are rising to new heights.
For years consumers in China, Japan and South Korea have banned Europeans from exporting fossil fuels, which are used in power plants to generate electricity.
But with stockpiles now flooding the entire region, unsupported goods from the Atlantic Ocean to Asia are being diverted by their owners and sent to Europe to raise money for rising prices and value. On Tuesday, gas prices in Europe rose by 23 percent to € 182 per hour megawatts as Russian gas over a pipeline plummeted.
Ciaran Roe, LNG’s chief executive in Platts, said: “Every major LNG commodity market is located under the largest gas reserves in Europe.”
According to data from Platts, the gap between European and Asian prices right now is the largest in history.
Spot LNG exports to Europe were priced at approximately $ 48.5 per million British British oil compared to $ 41 / min in Asia. In October and November prices in Asia were about $ 5 / Million more than in Europe, the lease said.
“The rise in gas prices in Europe is causing goods to run low,” said Alex Froley, an ICIS research analyst who monitors LNG tanks.
The move includes the diversion of US LNG ships to Asia returning to European ports and the first shipment of Australian LNG to Europe over a decade.
Minerva Chios, a US LNG sailor, was heading east near India on December 15 but turned around and was now on his way to the Suez Canal, indicating he was about to be brought to Europe, Froley said.
A second US LNG ship sailed around the Malacca Strait last week, with the third ship carrying the Australian LNG cargo to Barcelona on December 24 after leaving China earlier this month.
“This is believed to be the first Australian LNG to enter Europe since 2009, when there were several Australian carriers to the UK and France,” he added.
Torbjorn Tornqvist, co-founder and CEO of Gunvor, the world’s largest independent LNG retailer, said he expects to see 15 to 20 shipments, including a good exit, to Europe this month with the same amount in January.
“Europe is setting its own prices to attract more LNG and it is needed,” he said. “Without this, things could be very difficult depending on the weather. Shares are already down and will be much lower by the end of the winter.”
Froley of ICIS said Royal Dutch Shell, which has a contract from the Pampa Melchorita LNG terminal in Peru, shipped Peruvian LNG to the UK for the first time since 2019. Shell’s seven shipments have arrived in the UK since late October. , and four other carriers planned “in the coming weeks”, he said.
As in continental Europe, gas prices in the UK have risen by about 650 per cent since the beginning of the year, returning more than a dozen domestic energy investments.
Future contracts tied to the UK average price have risen by 15 per cent at a record 429p per therm, an increase of 77 per cent this month and equivalent to $ 320 a barrel of oil. Brent crude sells for $ 72.41.
Gas consumes about 40 percent of the UK’s electricity and heats most homes. It takes LNG shipping about one-fifth of the total capacity.
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