Tankers with American liquefied gas are deploying right in the middle of the ocean and heading for Europe, seeking to take advantage of rising prices on the European market.
Points of attention
- Multiple tankers with American LNG have changed their course to head towards European ports, in response to the escalating gas prices in the region.
- The redirection of LNG tankers to Europe allows American companies to capitalize on the current market conditions and earn higher profits compared to exporting to Asia.
- The increase in gas prices on the European market is attributed to the cessation of Russian gas transit through Ukraine and the cooling in Western European countries.
- Analysts note that redirecting gas carriers with American LNG to European ports can increase profits per tanker by an average of $5.3 million, showcasing the lucrative nature of this strategic shift.
- Europe's reliance on LNG has grown as it compensates for the loss of Russian gas via Ukraine and depleting gas storage capacities, leading to a surge in purchases in liquefied form.
What is known about the course of tankers with American LNG to Europe?
According to the publication's journalists, at least 7 tankers with American liquefied gas, which were heading to South Africa, Asia, and Colombia, have changed their route and are now sailing to EU ports.
"It's unusual to see so many price changes and so many obvious reversals," notes LNG market analyst Alex Frawley.
The authors of the material attribute this to the increase in gas prices on the European market, caused by the cessation of Russian gas transit through Ukraine against the backdrop of a significant cooling in Western European countries.
Against the backdrop of rising prices, American companies and traders are able to earn higher profits compared to exports to Asian countries.
Analysts at Spark Commodities note that redirecting gas carriers with American LNG to European ports increases profits per tanker by an average of $5.3 million.
Europe is increasingly relying on its ability to draw in LNG after losing Russian gas via Ukraine as it depletes its storage capacity. EU gas storage facilities were 59 percent full as of Monday, down 15 percent from the same period last year, the publication said.
Will the EU continue to buy Russian gas?
The European Union has not yet imposed any sanctions on the import of Russian gas, so it is currently purchasing it at a record pace.
But now Europe buys gas mainly in liquefied form, rather than through pipelines.
