Atlantic LNG cargoes swing to Europe as market braces for tighter winter outlook
UNG•At least four LNG tankers carrying Atlantic cargoes diverted from Asia to Europe last week as low inventories and expectations of stronger winter demand increased the region’s pull on supplies. EU storage was 74% full, 15 percentage points below the five-year average, while the Dutch benchmark closed at €84.15 per megawatt hour, above Asia’s $26.09 per mmBtu benchmark.
1. Tankers change course
At least four LNG tankers initially sailing towards Asia diverted to Europe last week, shipping data showed. Two vessels loaded at Louisiana’s Plaquemines facility are signalling for Grain, England, and Zeebrugge, Belgium; another carrying a Trinidad and Tobago cargo reversed course, while a fourth carrying a Louisiana cargo turned back towards Europe and is signalling for Dunkerque, France.
2. Low inventories lift demand
EU gas storage was 74% full at the end of last week, 15 percentage points below the five-year average. The Dutch Title Transfer Facility front-month contract closed Monday at €84.15 per megawatt hour, or about $27.64 per mmBtu, compared with $26.09 per mmBtu for the Asian benchmark. Europe-wide LNG deliveries in the past week were more than 5% below their four-week average.
