(BOE Report) – At least three liquefied natural gas (LNG) cargoes loaded in Australia and Canada are heading toward Europe and the Americas instead of their usual destination, Asia, after an Arctic storm curbed exports from the U.S., shiptracking data showed.
The diversion of supply away from Asia could tighten supply and support spot LNG prices in the region.
While much of the Northern Hemisphere saw colder-than-usual weather in the past week, an Arctic storm in the U.S. cut gas output and curbed LNG exports from Gulf Coast terminals, lifting prices globally on rising demand.
“Pacific cargoes may be drawn into the Atlantic to help backfill for lost U.S. production,” said Alex Froley, senior LNG analyst at energy consultancy ICIS, adding that a dip in feedgas flows to U.S. liquefaction plants this week suggests some 10-20 cargoes could be lost. The U.S. accounts for more than half of Europe’s LNG imports, Kpler data showed.
From Australia, tanker Methane Julia Louise is westbound crossing the Indian Ocean after loading a cargo from Gorgon LNG on January 23. It is expected to arrive at Dunkirk, France on February 19, LSEG data showed.
Australia last exported an LNG cargo to Europe in February 2025, according to Kpler data.
Additionally, tanker Maran Gas Hector, which departed Queensland Curtis LNG (QCLNG) in Eastern Australia around January 21-22, is heading east towards the Americas, Kpler and LSEG data showed.
From western Canada, tanker Qingcheng departed on January 20 and is heading westwards towards Asia, LSEG and Kpler showed. It made a U-turn to divert from its original route to go towards the Americas on January 26.
The Qingcheng tanker could possibly be heading for Europe through the Panama Canal, said Froley.
So far, exports from LNG Canada, which shipped its first cargo in July, have gone to east Asia.
Asian LNG futures based on the benchmark S&P Global Energy Platts Japan-Korea Marker (JKM) price were at $11.465 per million British thermal units (mmBtu) on Thursday.
The benchmark front-month contract at the Dutch Title Transfer Facility (TTF) hub however, closed higher at 39.97 euros per megawatt hour on Thursday, or $14.02 per mmBtu.
(Reporting by Emily Chow; Editing by Ronojoy Mazumdar)
