Natural gas cargo ships are currently dammed off the Spanish coast. Dozens of liquefied natural gas (LNG) ships, which are so coveted in Europe because of the lack of Russian energy supplies, cannot find a place to unload. Experts are already warning that if the backlog is not quickly cleared, these ships could look for alternative ports outside Europe.
More than 35 ships loaded with LNG are adrift off the coast of Spain and in the Mediterranean, traders, analysts and LNG terminal workers familiar with the situation told Reuters. Spain is offering just six of the coveted slots on its terminals this week, an insider said. The country has a total of six terminals.
Plants for pumps heavily used
In a statement released late Monday night, titled “Declaration of an exceptional operational situation,” Spanish gas grid operator Enagas emphasized that it may have to roll back LNG loads due to overcapacity. The high occupancy is expected to last at least until the first week of November. The liquid gas can be pumped from the transport ships at the power stations, converted back to gas by heating and then fed into the gas network.
LNG tankers also anchor for other countries
In addition, LNG ships are anchored near other European countries. That could indicate dozens of ships are still waiting, an insider said. “We’ve seen large numbers of cargoes waiting off the coast of southern Spain or circling the Mediterranean,” said Alex Froley, LNG analyst at data analytics firm ICIS. “Also, some charges stand against the UK.”
Waiting for a higher price?
This may also be due to the fact that some ships are waiting to sell their cargo at a higher price before the start of the heating season. “This strategy works in part because some companies have flexibility in their shipping portfolios due to disruptions such as the closure of the US Freeport facility,” Froley said, referring to the second-largest US exporter of LNG, which collapsed in June after an explosion. and a Brand ceased its activities.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
