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Several ‘Orphaned’ Cargoes as Demand Levels Off

Portfolio-based US exports particularly affected by longer journey times

Departed without destination

Our LNG Market Tracker shows there are currently 9 laden LNGCs without clear destination currently idling or circling off Spain, the Cape of Good Hope, or Japan. More than half of those left either Sabine Pass LNG, Corpus Christi LNG.

Surplus US LNG struggles to find home in Europe

As such the British Sponsor and the Clean Ocean, both carrying Corpus Christi cargoes, are still waiting for buyers whilst circling in the Atlantic.

Corpus Christi

The British Sponsor in particular has left Corpus Christi on 26th August by first taking course towards the Pacific. At the moment its eventual journey time is likely to approach or exceed the 40-day mark as the vessel is currently circling off the Cape of Good Hope in South Africa. Considering its original load level and boil-off, we expect the vessel to eventually deliver around 3.04 bcf.

The Clean Ocean, meanwhile, is circling in the Atlantic off the Azores. Given the number of vessels with portfolio cargoes on board already struggling to find buyers in Spain and the rest of Europe, the vessel may eventually be diverted.

Sabine Pass

This is what happed to the Gaslog HongKong, carrying a Sabine Pass cargo since 25th September. Clearly headed for Europe until 4th October, it was then diverted towards the Pacific with a current arrival horizon of 6th November, indicating an eventual journey of 42 days.

Other Sabine Pass cargoes in search of a home in the Atlantic are aboard the Maran Gas Hector, the Marvel Crane and the Hoegh Giant, all three idling off Spain. Their combined cargo volume after boil-off at the time of writing is c. 10.1 bcf.

On average, surplus US LNG departed more than a month ago, with the Patris currently at sea for more than 56 days and the Diamond Gas Sakura for more than 70.

Not just US LNG affected

However, it is not just US LNG that is affected. The Sevilla Knutsen carrying an Equatorial Guinea cargo has been circling off Tokyo Bay since Friday whilst the Valencia Knutsen joined the group of US cargoes above and is circling off Gibraltar carrying a Peruvian cargo.

Notably, the Golar Arctic is also in search for a destination for the Rotterdam reload of 2.57bcf it lifted on 1st September. The vessel has since been sailing up and down Europe’s Atlantic coast without unloading. 

Demand flattish week-on-week

Following the seasonal high demand period of summer, appetite for surplus LNG has been relatively low in recent weeks. Although the Atlantic Basin saw slight demand growth in the first week of October, the curve has since flattened off.