Reuters cited data from Kpler, an analytics firm, on Monday. The data showed that cargoes carrying liquefied gas (LNG), were diverted from Asia towards Europe over the last few days.
The report states that at least five LNG cargoes have been diverted into Europe since Russia stopped gas supplies to Austrian OMV.
Gazprom, the Russian gas supplier, stopped its supplies to Austria’s largest gas importer OMV on Saturday. OMV threatened to seize some Russian gas.
The European gas markets are in chaos after an arbitral court awarded OMV large compensation amounts in a dispute between it and its Russian supplier. The former wants the claim to be offset immediately.
Barbara Lambrecht is a commodity analyst with Commerzbank AG.
Media reports indicate that the next date of payment for gas deliveries will be 20 November. However, there is concern that deliveries could be disrupted before then.
European gas prices surge
Gazprom notified OMV of the planned stop on Friday. This led to an increase in natural gas price.
It was more profitable for gas suppliers to divert their gas from Asia to Europe.
Dutch TTF gas prices soared to 46.65 Euros per megawatt-hour on Monday, their highest level since October 20,23.
Laura Page, Kpler’s manager of gas insight and LNG, said to Reuters that “the JKM-TTF Spread flipped into negative terrain last week due to Russian pipeline gas supply worries and an upcoming winter cold spell which caused traders and LNG cargos from Asia towards Europe.”
Diverted tankers to Europe
According to Kpler, the Vivert City tanker that was headed to Bangladesh is now diverted to Britain’s South Hook Terminal.
The tanker, which was originally loaded in Equatorial Guyana and diverted to the United States on Friday, was loaded by Equatorial Guinée.
The Gaslog Windsor tanker was also diverted on Friday to Britain’s Isle of Grain Terminal. The tanker was originally headed to China and loaded with US Liquefied Natural Gas (LNG) from Sabine Pass.
A BW Lesmes tanker that was loaded in Nigeria was also diverted to the Isle of Grain terminal. The tanker was headed to China as well.
Alex Froley, senior LNG analyst with data intelligence firm ICIS was quoted by Reuters:
The UK is a popular destination for ships because the terminals are not as busy. This means that traders can access more unloading slots when they decide to divert Asian cargoes from Asia to Europe.
According to the report, the Diamond Gas Crystal Tanker tanker from South Korea was also diverted to Dutch Gate Terminal.
No risk of supply bottlenecks
Eurostat reports that Austria will only account for about 3% of the total EU gas imports by 2023.
Commerzbank stated that while the Russian gas share was above 80% in recent months of Austrian imports, it would be much lower in 2023.
Moreover, the expiration date of the transit agreement between Ukraine and Ukraine threatens to cut off the gas supply anyway.
Commerzbank Lambrecht stated that there was no immediate threat of a supply shortage, as the Austrian storage tanks were over 90% full.
According to the Austrian Energy Company’s head, alternative gas suppliers have been identified, so there is no dependence on Russian gas.
Lambrecht noted:
It is impossible to deny that the market, which is already tense, will become even more so.
This article Why are LNG tankers diverting to Europe from Asia? This post may be updated as new information becomes available
This site is for entertainment only. Click here to read more
