Against the backdrop of rising prices in the EU, traders are redirecting their gas from Asia to Europe. Reports UNIAN. This is reported by Kontrakty.UA.
Tankers carrying American liquefied natural gas (LNG) are turning in the ocean and heading towards Europe to take advantage of the increasing prices in the European market. This is stated by Financial Times.
According to the publication, at least seven gas carriers that were headed to South Africa, Asia, and Colombia have changed their routes and are now en route to European ports.
"It's unusual to see so many course changes and so many obvious turnarounds," noted LNG market analyst Alex Froley.
Financial Times links these events to the high gas prices in Europe, which have been caused by the halt in Russian gas supplies through Ukraine amid a cold winter in the western part of the continent.
The rise in prices opens up opportunities for companies and traders to achieve higher profits compared to sending their cargoes to Asia, where demand is lower and prices are depressed. According to estimates by Spark Commodities, redirecting gas carriers to Europe instead of Asia currently increases the profit from one tanker by an average of $5.3 million.
"Europe is increasingly relying on its ability to attract LNG after losing Russian gas through Ukraine, as it depletes its gas reserves. EU gas storage was filled to 59 percent as of Monday, which is 15 percent lower than at the same time last year," explains Financial Times.
Situation in the EU gas market: latest news
As UNIAN reported, the European Union has not yet imposed any sanctions on Russian gas imports, so it is currently purchasing it at record rates. However, Europe is now buying gas primarily in liquefied form rather than through pipelines.
We also reported that Slovak Prime Minister Robert Fico is seeking a meeting with Ukrainian President Volodymyr Zelensky to persuade him to resume the transit of Russian gas through Ukrainian territory.