Second Egypt Wheat Ship Stuck in Russia Sails After 3-Week Wait
By Abdel Latif Wahba and Áine Quinn (Bloomberg) — An Egyptian wheat ship has been allowed to sail after waiting three weeks for the correct paperwork, as a dispute between one...
By Sergio Chapa (Bloomberg) Higher natural gas prices and lower shipping rates are increasing the draw of U.S. liquefied natural gas cargoes to Europe over more traditional winter markets in Asia.
As of Thursday afternoon, there were 41 U.S. LNG cargoes with either declared destinations in Europe or on a likely path to the natural gas-starved continent, compared with 24 heading to Asia, ship-tracking data compiled by Bloomberg show.
Also Read: Boston Draws Caribbean LNG Cargoes in Rare Price Play
The difference of 17 cargoes is the widest so far this winter, which has been marked by volatile gas prices in Europe, where storage inventories are low and major supplier Russia has not delivered as promised.
Last month, benchmark European gas futures were as much as $24 per million British thermal units higher than those in Asia.
The gap has since narrowed significantly, but volatile winter spot prices and shipping rates have tipped to the point in favor of Europe, said David Seduski, an LNG industry analyst with the New York office of Energy Aspects. The firm forecasts that Asia will not begin to draw more U.S. LNG cargoes from Europe until the second quarter of 2022.
“LNG imports have been the saving grace for European supply in the short-term,” Seduski said.
U.S. LNG cargoes to Asia can take more than a month compared to the two-week voyage for most destinations in Europe, shipping data compiled by Bloomberg show. Those shorter distances also result in increased tanker availability.
Spot LNG carrier rates west of the Suez Canal of $42,000 a day are 79% lower than the December peak of $200,000 and 75% lower than a year ago, according to shipping data firm Fearnleys.
Also Read: Boston Draws Caribbean LNG Cargoes in Rare Price Play
By Sergio Chapa © 2022 Bloomberg L.P.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,914 members that receive our newsletter.
Have a news tip? Let us know.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign UpMaritime and offshore news trusted by our 105,914 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up