Page 5 - AsianOil Week 47 2021

AsianOil ASIA-PACIFIC AsianOil

demand from China, Japan and South Korea is of its own. Pipeline supplies of Russian gas
strong currently, it is weaker in South Asia. That to Europe have been irregular recently, with
region is more exposed to the spot market, and flows on the Yamal-Europe pipeline briefly
with prices at record highs, this appears to be act- reversing. The short-term picture has been
ing as something of a deterrent to buyers. complicated further by Germany’s suspension
According to Kpler data, India is set to import of approval to begin flows on the new Nord
1.51mn tonnes of LNG in November – the low- Stream 2 gas pipeline.
est level since April 2020, when the pandemic Despite these developments, however, Euro-
first hit demand. Pakistan’s projected Novem- pean LNG imports are expected to be slightly
ber imports of 700,000 tonnes would be the lower in November than they were in October,
lowest since June, and Bangladesh is on track to at 5.99mn tonnes, down from 6.03mn tonnes,
import 360,000 tonnes in November, down from according to Kpler. Refinitiv data also project
530,000 tonnes in October. that Europe will import less LNG in November
than it did in October, at 7.23mn tonnes, down
What next? from 7.28mn tonnes.
The weekly index for LNG for delivery to north The figures are still higher than levels of
Asia rose to $36.70 per million British thermal European LNG imports a year ago, and certain
units ($1,015.12 per 1,000 cubic metres) in trends do point to some potential for increased
the week up to November 19, from $31.50 per US-European LNG trade. Rystad Energy said in
mmBtu previously. While this is below the spot its weekly gas and LNG market note on Novem-
index for mid-October, it is still 473% above ber 24 that Western and Southern Europe had
prices a year ago. imported 5.5mn tonnes of LNG in the month to
And as LNG shipments to Asia rise, Asia-Pa- date and were on track to exceed October’s total
cific shipping day rates are also reported to have of 5.7mn tonnes. The consultancy added that
surged to an all-time high of around $300,000 mounting congestion at the Panama Canal may
per day for a standard LNG carrier, with vessel be working to Europe’s advantage as US export-
demand outpacing the supply of ships in the ers can choose to remain within the Atlantic
region. Basin rather than send vessels to Asia via the
Despite high prices potentially deterring pur- Cape of Good Hope.
chases on the spot market among some Asian Congestion in the Panama Canal was one of
countries, the region still seems set to dominate the major bottlenecks that materialised last win-
LNG purchases over the coming weeks. ter, so it would not be surprising if buyers and
By contrast, Europe does not appear to sellers alike are keen to avoid a repeat of this.
be scrambling to buy additional volumes of And with day rates so high, shorter routes may
LNG, even as it struggles with gas shortages be seen as advantageous by buyers.™

Week 47 26•November•2021 www. NEWSBASE .com P5