LIQUEFIED NATURAL GAS (LNG) TANKER SHIPS ARE MOVING FROM ASIA TO EUROPE

Three LNG tankers carrying super-chilled fuel from the United States changed course last week. They were originally headed for Asian destinations, including China and South Korea, according to ship-tracking data from Bloomberg and Kpler.

LNG Tankers Are Changing Course. Source: Bloomberg

The changes in course come as European futures prices surged — hitting their highest level this year on Friday — on rising supply risks from conflict in the Middle East just as the heating season begins. They also illustrate flexibility in the direction of flows from the United States and fierce competition for supplies between Europe and Asia, the two biggest consuming regions.

Traders said the changes were a reaction to prices rather than any fundamental shifts in demand. Dutch gas futures have risen 29% since mid-September.

“However, with little overall growth in LNG supply from winter to winter, Europe will have to continue to compete with the growing Asian market for the limited flexible volumes available,” Joshua Belo-Osaji, analyst at Timera Energy, said in a note.

The oil tanker Endeavour changed course in the South Atlantic to the north on Friday, ship tracking data shows. It was rerouted from China to Europe, though its exact destination is not yet known. The Vivit Arabia LNG was headed to Chittagong, Bangladesh, until Wednesday, when it then set its destination as Britain’s Milford Haven, Bloomberg data shows. A few days later, the Marvel Dove changed course from South Korea to Belgium.

Last month, at least two cargoes changed routes from Europe to Asia due to increased demand in those countries.