At least four liquefied natural gas(LNG) carriers, originally bound for Asia, changed course to Europe last week as the European market prepares for winter with low inventories.
According to Reuters, expectations of increased winter demand and stock replenishment needs are boosting Europe's attractiveness for cargo from the Atlantic. Course changes are recorded in Kpler and LSEG vessel tracking data.
Gas storage capacity in the European Union stood at 74% at the end of last week, below the five-year average, according to a note from Vortexa analysts.
Low stocks and risk of shortages
Europe is entering the winter season with the lowest gas reserves in recent years and is expected to increase LNG purchases to replenish them.
Greater European needs may intensify competition for available cargoes if demand in Asia recovers. At the same time, supply disruptions from the Persian Gulf, in the midst of the US-Iran war, continue to limit the available quantities.
The four ships that changed course
The ships Shra'ouh and Al Kharrarah, which docked at the Plaquemines LNG facility in Louisiana, USA, sailed southeast before turning north around October 8–9.
According to the monitoring data, they now declare Greene, England, and Zembrugh, Belgium, respectively, as destinations.
The Rosenrot LNG, which received cargo from the Atlantic LNG facilities in Trinidad and Tobago, changed course on October 9, after previously leaving Europe.
Similarly, Elisa Aquila changed direction several times during its voyage, before turning back to Europe on October 7. It carries cargo from the Calcasieu Pass facility in Louisiana and declares Dunkirk, France as its destination.
European gas contracts for next month's delivery to the Dutch market closed on Monday at €84.15 per megawatt hour.
Source: Reuters
