Europe is losing out on liquefied natural gas (LNG) cargoes as Asian buyers outbid European utilities in an increasingly tight global market, with several shipments reportedly being diverted mid-voyage.
Ship-tracking data shows multiple LNG tankers originally bound for Europe changing course towards Asia, as disruptions linked to the Middle East conflict and strikes on key Qatari facilities tighten global supply.
The strain has been exacerbated by instability around the Strait of Hormuz, a critical energy chokepoint through which around a fifth of global LNG flows. The situation has driven up prices and intensified competition for available cargoes.
Qatar’s Ras Laffan LNG facility, the world’s largest, has reportedly declared force majeure on some contracts, affecting deliveries to countries including Belgium, Italy and Poland.
Market data suggests at least a dozen cargoes have been redirected away from Europe since the escalation began, with traders favouring Asia, where buyers are paying a premium for spot LNG.
European benchmark gas prices have remained volatile, with the Dutch TTF index trading well above pre-crisis levels, raising concerns about storage replenishment ahead of next winter.
Italy, Belgium and Poland are among the countries seeking alternative supplies, while policymakers and analysts warn that Europe may face further pressure during the upcoming storage refill season.
via Euronews
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