Traders divert six US LNG cargoes to Europe amid price surge

Traders have diverted at least six liquefied natural gas (LNG) cargoes from their initial Asian destinations to Europe, driven by higher prices and weak demand in Asia. This shift comes in response to increased European demand for LNG following the expiration of the Ukraine transit deal and colder weather forecasts in northwest Europe. As Asian spot LNG prices have decreased, making them less attractive, cargoes that were originally headed for China, South Korea, Thailand, and Singapore are now en route to European ports. Data indicates that nearly all Atlantic basin cargoes are currently trending towards Europe, with significant increases in shipments expected this January. European storage inventories remain at 64% capacity, which is notably lower than last year's 79%, prompting a surge in LNG imports to meet demand. Analysts report that the shift reflects a robust arbitrage opportunity amidst ongoing geopolitical tensions and winter weather challenges in Europe.