Europe Could See Build in Floating Natgas length: ICIS

Cargoes offshore Europe that are remaining at sea is an indication of growing length in the Atlantic’s LNG market, according to ICIS.

• With European gas storage levels at high levels, traders are seeking other methods to store gas until prices rebound during winter, ICIS said. This includes utilising floating storage.
• As an example, the Vivit Americas LNG has been remaining offshore since mid-September laded with a cargo from Cove Point. The cargo loaded Sep. 3.
• Should weather remain mild in October, ICIS expect a steep build in floating LNG storage by November and December, which could add downside risk to European gas prices over the winter. The extent to which this occurs would be dependent on how cold temperatures become.