LNG Ships Are Turning Away From Europe’s Gloomy Gas Market
What will you do if your cargo of LNG is in the Atlantic, the European market gives you a nickel for it, the Asian market has hit tanktops and there is just so much LNG around, you might want to think of transforming the Adriatic into a rink? That’s called oversupply. Not a funny situation for producers as they need stable, baseload production for their facilities. Ever switched an LNG production facility off and then on again? If you did, you know you don’t want that crap too often in your life. So, the LNG is coming and there is ever more of it. But the market does not siphon it off at sky high prices. The only option you have is throwing it off onto whatever buyer takes it for a nickel because you need your ship back. Empty, as the next cargo cannot linger in the tank forever. LNG is no business for the lazy, and it’s not for those with a heart condition. North Western Europe will take your cargo if you need to dump it – for a nickel. Balls of steel (or a large balance sheet) help.
A tanker traveling from the Arctic region to Belgium with a cargo of Russian liquefied natural gas was instead sent to Israel at the last moment.
