LNG tankers pile up on Europe's coasts

For weeks now, full LNG gas tankers have been anchored off the south-west coast of Spain, waiting for a date to unload their eagerly awaited cargo. Even though Spain has the largest regasification capacities in Europe with 6 terminals (35%) and the largest storage facilities in Europe with almost 45%, only one tanker per terminal can be unloaded at a time in a time-consuming and controlled manner. To do this, the frozen and therefore liquid gas must be pumped out, reheated, discharged and stored. And if the storage capacities with up to 90% are then exhausted, even the best gas can no longer be transported further - especially as the transnational pipelines to the north are reduced to two and only have a limited range into France. The earliest that further gas could flow out would be at the beginning of November due to an actual increase in gas consumption in the country.

There are said to be over 35 ships off the coast and in the Mediterranean, some of which have been waiting off Cadiz for three to four weeks. Most of them have sailed from North American harbours (Port Arthur/Texas). They are now waiting to be unloaded, perhaps also for the usual price increase in the winter months, or for another berth in the European/North African area. Waiting too long is also unprofitable, especially when there is a risk of prices levelling out at a lower level. The reasons for this gas congestion are the unusually warm weather in October and a certain decline in economic activity across Europe. However, what is also taking some of the pressure off the gas supply business is the reduced gas loading capacity in the USA, where the loading station of the second largest exporter in Freeport/Texas had to cease operations in July following an explosion and fire.

On the other hand, China has also recently stopped its LNG exports in order to keep these supplies in the country itself - which could indicate an increase in gas imports to China in the medium term. A fleet of tankers would then possibly be sent there if the European - especially German - LNG terminals currently under construction are not connected to the grid soon. If there are now also significant fluctuations in the gas price, then all the signs will change again. Then there will once again be winners and losers in the LNG freight business - it is difficult to predict who these will be at present. Someone always wins!