American gas tankers change course to Europe

Posted on December 31, 2021

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Over the Christmas weekend, the number of American LNG tankers that changed their Asian course to the European one increased from 15 to 20. The reason: a sharp rise in spot prices for natural gas, writes DW .

The number of American liquefied natural gas (LNG) tankers bound for Europe has increased by one third over the past Christmas weekend, Bloomberg reported on Monday evening, December 27. If on the eve of Christmas Eve 15 ships were sailing in the European direction, then at the beginning of the week there were already 20 of them.

According to the agency, another 14 tankers with LNG cargo are ready to take the same course if information on the corresponding orders is received.

American tankers change course to Europe

Earlier, on December 22, the Financial Times reported that American gas tankers moving to Asia began to change direction to Europe due to the fact that sharply increased prices for blue fuel there exceeded those in Asia. Spot prices (i.e., subject to immediate delivery and payment – Ed.) In Europe reached about $ 48.5 (about 43 euros) for 1 million British thermal units (BTU), while in the Asian region they were 41 dollars ( about 36 euros) for 1 million BTU.

Spot prices hit the $ 2,000 ceiling

The day before, on December 21, the spot gas price in Europe for January futures for the first time exceeded 2000 dollars (approximately 1770 euros) per thousand cubic meters, which became an absolute record in the entire history of trading. Shortly thereafter, the price reached $ 2,200 (about € 1,943).

In turn, Ukraine accused Gazprom of gas blackmailing Europe due to its refusal to increase gas transit, although it has additional transit capacities. On December 20, the head of the Ukrainian GTS Operator, Sergei Makogon, wrote on Facebook that in this way Russia is trying to speed up the certification of the controversial German-Russian gas pipeline Nord Stream 2.

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