LNG Tankers Wait Off Europe For Higher Prices

A number of LNG tankers are waiting off the coast of Europe for higher prices later in the winter for new destinations, as LNG on water continues to rise according to ICIS.

• Uniper's LNG Rosenrot has been waiting off Cadiz, southern Spain for over a month since 22 August with its US Freeport LNG cargo. There seem no immediate plans to deliver. The cargo was loaded from Freeport in the US on 10 August.
• The current number of around nine waiting vessels is lower than at its peak of 20-30 last winter. But current numbers could build if the weather is mild in October reducing onshore gas demand for heating.
• LNG tankers at Sea for at least 20 days saw another weekly increase last week of 30% to 3.11mn tons as of 24 September. This is up by 5% on the year and 49% above the 2018-2022 average according to Bloomberg.
• But falling TTF time spreads make it unprofitable for floating LNG tankers to unload in the fourth quarter at this point in time. Until last week, a strong contango in the 4Q23 TTF gas prices has supported LNG being held in ships idle at sea, which led to the build-up in floating vessels.