A roundup of news and commentary from NGI’s LNG Insight
- Uniper SE has joined other energy companies, including BP plc and Equinor ASA, in avoiding the Red Sea for LNG shipments amid escalating tensions in the region. Iran-backed Houthi rebels are launching attacks on commercial vessels in the southern Red Sea.
- As of Friday, eight LNG vessels have diverted from the Red Sea and Suez Canal, including five that have loaded in the United States, according to Kpler data.
- Despite turmoil in the shipping market and longer voyages to avoid the Red Sea, LNG freight rates continue a slide that started last month amid a lull in global demand and similar prices for the fuel in Asia and Europe that have limited arbitrage opportunities.
- According to Spark Commodities, rates in the Atlantic Basin were down 8.53% day/day on Friday to $96,500/day, while rates in the Pacific Basin were down 6.42% to $76,500/day.
- Russia’s PAO Novatek has sent force majeure notices to some of its Arctic LNG 2 offtakers, saying shipments from the project will be delayed due to sanctions imposed by the United States in November, according to Reuters.
- Arctic LNG 2 is expected to start-up by the end of the year and begin shipping some LNG cargoes in 2024, but the sanctions will limit its shipments, according to the Reuters report, which cited anonymous sources.
