Maran Gas Delphi. File photo: Maran Gas
By Jonathan N. Crawford
(Bloomberg) — A liquefied natural gas tanker plying the waters of the Mediterranean has created a guessing game for energy traders.
The Maran Gas Delphi has taken a meandering course after loading up on U.S. shale gas a month ago at Cheniere Energy Inc.’s Sabine Pass export terminal in Louisiana. The ship anchored off the coast of Greece for several days, prompting speculation that it would deliver its supplies to a port in the region. Instead, the tanker is now bound for the Red Sea, raising the prospect that it may instead travel to Southeast Asia.
The winding track of the Maran Gas Delphi is a testament to how a gas glut fed by surging production from countries including U.S. and Australia is complicating global trade of the fuel. The rise of so-called homeless LNG, or supplies not already committed to customers, is confounding efforts by traders and analysts to get a grasp of the market and make bets.
“It’s bit of a mystery,” Jason Feer, head of business intelligence at ship broker Poten & Partners in Houston, said of the Maran Gas Delphi. “Normally LNG logistics are pretty well-rehearsed, and having an LNG carrier cooling its heels is expensive.”
Cargoes of LNG not committed to customers will peak at 80 million tons by 2020, up from 50 million now, Feer said. This comes as buyers demand more flexible terms and long-term contracts expire amid the global market oversupply, he said.
“There’s going to be a larger number of pieces going forward and people are going to have to make sense of that,” Feer said by phone.
Anangel Shipping Enterprises, owner of the vessel, and Royal Dutch Shell Plc, which chartered the ship, declined to comment. A spokeswoman for Cheniere wasn’t immediately able to provide comment. The contract terms of the cargo were unclear.
“Everybody is working to track the vessels,” Feer said. “From a trader’s point of view, understanding who’s long, who’s short and where volume is moving is obviously really critical.”
–With assistance from Anna Shiryaevskaya.
© 2016 Bloomberg L.P
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,933 members that receive our newsletter.
Have a news tip? Let us know.
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
(Bloomberg) — An Iranian ship that’s been linked to Houthi attacks in the Red Sea is returning home, removing a prominent asset in the area as the Islamic Republic braces...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,933 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
