European security of gas supply is a topic that won't be going away any time soon. In this article, we discuss the latest proposals by the European Commission to introduce a 80% gas storage target by 1 November and Friday's deal between US and the Europe Union to increase LNG supplies by 15 bcm this year.
A few laden Yamal LNG-chartered vessels that were earlier signalling their arrival at ports in France and Spain are waiting for orders to sail to new destinations suggesting a pre-emptive move by Yamal LNG ahead of a possible ban by the EU on Russian ships entering its ports.
The Russian war in Ukraine is in its seventh day and financial sanctions on Russian individuals and banks are set to cripple the financial sector. Energy exports have not been the target of sanctions and even though the effect has made buyers and shippers wary, trade volumes have been unmoved so far as current loadings would have traded and had vessels fixed before the invasion. But, with Urals hitting a new record discount to Brent, finding buyers over the coming weeks is set to become increasingly difficult.
Russia’s Sovcomflot-owned 172,600 m3 Christophe de Margerie ice-class LNG carrier has diverted away from the UK and is sailing to France’s 8 mtpa Montoir LNG receiving facility, following the UK’s decision to ban ships with Russian connections entry to its ports.
European Gasoil imports have fallen to an 11-month low, despite this being the peak demand season. A mild winter in most of the region has combined with faltering demand recovery, meaning just 7.5 million tonnes were imported in January 2022.
In this update Alex Booth, Kpler's Head of Research comments on the developments through the day in Ukraine and the potential market and geopolitical ramifications.
German Chancellor Olaf Scholz has put on ice the certification of the new Nord Stream 2 pipeline following President Putin’s decision to order troops into the Donbas region of Ukraine on “peacekeeping duties”.
Negative round trip rates are a clear signal of vessel oversupply in the Atlantic. With the arbitrage likely to favour Europe over the coming months the market could move even lower but a sustained period of below zero rates is unlikely to persist.