Europe Is Desperate for LNG While Asia Has More Than It Needs
- Energy-starved Europe is top market for LNG after price rally
- Multiple diversions are expected away from Asian markets
The liquefied natural gas tanker Sohshu Maru berth in Chiba Prefecture, Japan, on Dec. 17.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Asia’s relentless buying of liquefied natural gas earlier this year has left the region so well stocked for winter that spot shipments are being diverted to energy-hungry Europe.
Multiple vessels are now being diverted from Asia after prices in Europe traded at a rare premium, traders with knowledge of the matter said. A looming LNG wave will bring much needed supplies just as temperatures are dropping fast and is helping push European gas prices down from record-highs last week.