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Red Sea Disruption Pushes LNG Sellers toward Inter-Basin Trade

LNG

LNG traders are favouring inter-basin trading between regions due to disruption in the Red Sea and a drought in the Panama Canal, Platts said.

  • Moving cargoes between basins has been subdued by shipping constraints, despite an arbitrage having been open on paper.
  • The closure of arbitrage opportunities adds further pressure for sellers, amid weak global demand.
  • However, vessel availability has improved since last month, although this could be undermined by the rerouting from Suez and longer shipping routes, Platts added.

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