Canada and Australia LNG cargoes headed to the Atlantic after Arctic storm in a rare move
Ship tracking data revealed that at least three LNG cargoes, loaded in Australia and Canada, are headed to Europe and the Americas, instead of Asia, their usual destination. This is because an Arctic storm has curtailed?exports out of the U.S.
The diverting of "supply" away from Asia could lead to a tightening in supply and support the spot LNG price in that region.
The price of gas has risen globally due to the increased demand.
"Pacific cargoes could be brought into the Atlantic to backfill lost?U.S. Alex Froley is a senior LNG analyst with energy consultancy ICIS. He said that the drop in feedgas flowing to U.S. plants for liquefaction this week indicates that 10-20 cargoes may be lost. Kpler data shows that the U.S. imports more than half of Europe's gas.
After loading cargo at Gorgon LNG, the tanker Methane Julia Louise from Australia is heading west across the Indian Ocean. LSEG data indicated that it is expected to reach Dunkirk in France on February 19.
According to Kpler data, Australia exported its last LNG cargo to Europe on February 20, 2025.
Kpler data and LSEG showed that the tanker Maran Gas Hector left Queensland Curtis LNG in?Eastern Australia on January 21-22. It is now heading east to the Americas.
LSEG and Kpler show that the tanker Qingcheng left western Canada on January '20, heading westwards to Asia. On January 26, it made a U turn to divert from its original course and head towards the Americas.
Froley said that the Qingcheng oil tanker may be headed?for Europe via the Panama Canal.
Exports of?LNG Canada's first cargo, which was shipped in July, are mainly destined for east Asia.
On Thursday, Asian LNG futures prices based on the benchmark S&P Global Energy Japan-Korea Marker price (JKM) were $11.465 per million British Thermal Units (mmBtu).
The benchmark front-month contracts at the Dutch Title Transfer Facility hub (TTF), however, closed at 39.97 euro per megawatt hour or $14.02 per million Btu on Thursday. (Reporting and editing by Ronojojo Mazumdar; Emily Chow)
(source: Reuters)