Posted on 12/28/2021 6:07:17 PM PST by Hojczyk
Huge cargo ships carrying liquid gas that were destined for China have changed course and are now heading towards the UK as Europe remains trapped in a major supply crunch.
While the Continent’s energy crisis and high prices have attracted ships away from other parts of the world, the new arrivals are now bringing prices down. Benchmark Dutch front-month gas fell for a fifth day yesterday, dropping as much as 9.2pc in Amsterdam.
The UK gas price rocketed to a record 470p per therm last week, up from just 50p in April, but has since fallen to under 270p.
James Huckstepp, managing analyst at S&P Global Platts, said tankers are flocking towards British shores in a move that is “critical to tempering even more extreme prices and demand destruction in Europe”.
He said: “We are seeing cargoes previously destined for Asia now diverting to the UK. This is particularly the case for those cargoes originating in the US, given the journey between the US and Europe is much shorter than that to Asia.”
The number of US tankers heading for European ports jumped by one third last weekend, according to Bloomberg, with 20 vessels bearing American gas heading for Europe and another 14 heading in the general direction of Europe while awaiting final orders.
The number of cargoes travelling to the UK and elsewhere in Europe will raise hopes that new supplies can ease the energy crisis and help lower gas prices, which have declined after soaring to record highs last week. That will bring some relief to UK energy bosses, who met Downing Street officials this week for crunch crisis talks.
(Excerpt) Read more at finance.yahoo.com ...
Green energy seems to fail in the winter
Europe has been hit with a ‘wind drought” and Russian gas has been reduced to a minimum. So US LNG goes to the highest bidder. Sorry Xi, get in line.
Big wind
and big sun
when winter comes
can’t get it done
Be sure gretta’s house is still using only green power.
The term “liquid gas” is confusing. It is NOT LNG, I assume. A substance is either a liquid or a gas with a definite Phase change at a certain temperature and pressure.
Yahoo journalism. The ships are being diverted by their shipping customers. The ships don’t make such decisions.
It’s called liquefied gas, as in Liquefied Natural Gas.
“The ships don’t make such decisions”
25 years ago they did self piloting experiments on one of the ships I was on. We were told not to interfere with it even when we saw it making errors. Several times the system made hard turns and once when I was on watch, towards another ship. I made interference.
Just ask the russians : )
Those nasty fossil fuels.
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