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Gas Ships Divert From China to Europe in Price Premium Race

  • Thirteen LNG ships re-route to Europe instead of Asia
  • Rare premium between Europe and Asia prices is quickly fading
Updated on

More natural gas cargoes are being diverted away from China to Europe, as traders spend hundreds of thousands of dollars to take advantage of a rare price premium before it disappears.

Thirteen liquefied natural gas carriers shipping supply mainly from the U.S. and West Africa are re-routing to Europe instead of Asia, according to shipping data from Kpler and Bloomberg. That’s up from about eight ships spotted a week earlier. In one case, traders are sending a ship back through the Panama Canal, paying canal charges of almost $400,000 for a second time, according to Bloomberg estimates.