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    More LNG cargoes diverting from Asia to Europe: press

Summary

Traders hope to take advantage before arbitrage window closes.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, World, Liquefied Natural Gas (LNG), Security of Supply, Market News, News By Country, EU, China, Nigeria, Qatar, United States

More LNG cargoes diverting from Asia to Europe: press

More LNG cargoes originally destined for Asia are being diverted to Europe to take advantage of soaring prices there, Bloomberg reported January 5, citing shipping data from Kpler.

Another 13 LNG tankers, largely from the US but also from Nigeria and Qatar, have been diverted, up from eight diversions Kpler documented last week. In one case, a tanker was sent back through the Panama Canal, incurring a second canal charge of $400,000, Bloomberg reported.

With more cargoes set to arrive in Europe, Bloomberg said, the arbitrage window between Asia and Europe is closing quickly, and may not last for February deliveries.

Asia prices are being weighed down by weaker Chinese demand, reflecting lower factory activity ahead of the Lunar New Year holidays and as pollution curbs take affect ahead of the Beijing Winter Olympics, which get under way in early February.