Higher European prices and poor demand in Asia for LNG have resulted in traders diverting at least six US LNG cargoes already this month, Reuters reported on January 20.

Demand for the super-chilled fuel in Europe is high at the moment as frigid temperatures have hit northwest Europe.

Meanwhile, European member states are also seeking to find new sources of energy supply after the expiry of the Ukraine transit agreement on January 1, which previously sent Russian pipeline gas to Europe. The cancelation of that deal has left Europe with 5% less gas to start the year.

According to data from Kpler, the six cargoes loaded in the US had at first been scheduled to be shipped to China, Thailand, Singapore and South Korea. However, between January 8 and January 14, the LNG tankers changed direction and began heading for Europe.

The LNG cargoes were loaded at US Gulf Coast export terminals Freeport LNG, Calcasieu Pass, Cameron LNG and Sabine Pass.

LNG spot market prices for Asia have dipped two weeks in a row amid ample supply levels. With spot prices trading at about $14 per million British thermal units (mmBtu), some buyers have been put off by the price suppressing demand.

High inventories in Asia has also resulted in China, the world’s biggest importer of LNG, choosing to resell cargoes both to Europe and to other countries within Asia.

China has seen inventories well stocked amid a combination of weak domestic demand, high spot market prices, higher domestic gas production and increased pipeline gas from Russia.

A 3.3% increase in LNG imports from Russia to reach 8.3mn tonnes in 2024, has also played a significant role in keeping China’s gas inventory well stocked.