Qatari Spot LNG Favours Asia Over Europe

More Qatari spot LNG cargoes are headed towards Asia instead of Europe due to shipping disruptions in the Red Sea with the producer offering spot LNG cargoes delivered FOB according to sources.

• Qatar Energy’s last vessel – the Al Shamal – that is headed for Europe left the country on 29 January. Since then, LNG vessels have been sent to Asia, Kpler ship tracking showed.
• Several sources confirmed that the producer is now offering spot LNG cargoes delivered FOB to better entice Asian buyers, Laura Page, Kpler analyst, said.
• “What we are hearing is that they have been selling FOB, indicating that they could be selling more spot LNG into Asian markets,” Page said.
• “It’s very difficult to say how much [LNG] Europe is losing out on,” said Page.
• A China-based trader said at least one cargo has been offered FOB by Qatar Energy and awarded at the high $8/mmbtu level.
• “It would make sense for Qatar to look for cargo swaps and other options to fulfil its contractual positions in Europe while minimising extra shipping costs,” ICIS LNG analyst Alex Froley said.
• Qatari LNG exports rose to 7.6mn tons last month, up from 7.1mn tons in December. Shipments to Asia increased by 5% on the month.