Europe does not let go of Yamal LNG

For the third month, deliveries of Yamal LNG continue only to Europe. At the end of February, Novatek began using conventional non-commercial gas carriers, which traditionally went to China, to speed up the delivery of shipments to the EU.

In March, Yamal LNG continues to ship shipments, which still go only to Europe. Tomorrow, the fourth gas carrier with Russian LNG in March will dock at the European terminal. The Vladimir Voronin tanker will deliver about 100 million cubic meters of gas in the form of LNG to Montreux, France.

Thus, for the third month, Yamal gas has been going exclusively to EU countries. Most of them go to France, from where regasified LNG can also get to Germany, as the German SEFE is booking a terminal in Dunkirk.

European companies began to buy up all volumes of Yamal gas after the arrival of frost and a serious decrease in stocks in storage facilities.

If in January and most of February ice-class gas carriers went to European ports, which pick up shipments directly at the port of Sabetta on the Yamal Peninsula, now Novatek has attracted traditional gas carriers to the delivery. So, the Vladimir Rusanov ice-class tanker is now delivering cargo to the Gulf of Kilda, where it is pumped into conventional gas carriers. Previously, this scheme was used to deliver goods to China and other Asian countries, and now it is also used for European logistics. Perhaps to speed up delivery.

There may be several reasons for the total purchase of Yamal gas by Europe. On the one hand, Europe has the highest gas prices and the same Chinese customers of Yamal LNG are interested in reselling fuel to Europe in conditions of reduced demand in China. In addition, a ban on spot and non-contractual purchases will come into force in the EU this year, and European companies may be in a hurry.

How long this situation will last is unknown. It may continue if China continues to resell cargo to Europe amid a halt in LNG exports from Qatar and the UAE because of the Iranian crisis. On the evening of March 3, gas supplies for a month ahead on the TTF exchange amounted to $ 695 per thousand cubic meters. While cargo for Northeast Asia is sold cheaper, as the region can switch from gas to coal. On March 2, quotes stopped at $ 482.

In addition, the Arctic LNG-2 sanctions project continues to actively export gas and ships go to China. The last gas carrier, Voskhod, left the floating storage facility near Murmansk on March 2.