Shiptracking data revealed on Monday that at least three LNG vessels from Oman and Australia were heading west to deliver the gas, one of which was sailing through the Red Sea. This is because higher prices in Europe are continuing to attract more supplies. As it seeks replacement of piped Russian gas following the expiration of the transit agreement with Ukraine on January 1, increasing shipments to Europe from Asia over Asia may help meet the additional demand. Last month, at least six LNG cargoes were diverted from Asia and shipped to Europe. Data from Kpler and LSEG revealed that two tankers loaded in Qalhat, Oman earlier this month are now heading west. This is the first time since July 2023 that such shipments have been made.

LSEG data revealed that the tanker Greenergy Pearl loaded between 1 and 3 February is headed to the Fos Cavaou LNG Terminal in France. The Salalah LNG ship, loaded on February 4 and 5 is headed to the MarmaraErglisi LNG Terminal in Turkey.

The vessel sailed past the Gulf of Aden, off the coast of Yemen, on 7 February and is now traveling through the Red Sea.

Go Katayama of Kpler, an analyst at Kpler, said that "flexible volumes from Oman or Qatar could continue to be bound for Europe in a TTF high environment on the prompt market". He was referring to the Dutch Title Transfer Facility as the benchmark in Europe.

He said that despite the geopolitical risk, the number of ships using the Bab al-Mandab Strait in the Red Sea could still be low.

Many shipping companies suspended Red Sea trips, rerouting their vessels around Africa instead to avoid possible Houthi attacks.

Data showed that of the 12 million tons of LNG Oman exported last year, almost all cargoes went to Asia. Only two or three cargoes were sent to Kuwait. Data showed that the Iran-aligned Houthis who have launched more than 100 attacks against ships since November 2023, and sunk 2 vessels, will limit their attacks to commercial vessels if the Gaza ceasefire can be fully implemented.

The data also showed that an LNG vessel which left Wheatstone in Australia on February 5-6, is on a rare trip to Europe and will arrive at Dunkirk, France, on March 7-8.

Alex Froley is senior LNG analyst for ICIS and said that the Elisa Ardea was a brand new vessel chartered on a long-term basis by French utility EDF.

He added that if the Elisa Ardea completed the journey to France, it would be the first Australian cargo in Europe since the Woodside Rees Withers transported one from Northwest Shelf in Rotterdam to Gate in Rotterdam, in November 2022.

He does not anticipate that more Australian LNG will be shipped to Europe, as the ship has likely been repositioned to the Atlantic from the Pacific for U.S. shipments going to Europe.

(source: Reuters)