UK set to receive diverted Asian LNG on Sept 14
A liquefied natural gas (LNG) shipment initially destined for Malaysia was diverted towards the UK port of Milford Haven on Wednesday with an expected arrival date of September 14, Reuters reports.
The cargo, which was loaded in Egypt's Idku export plant on August 7-8, was crossing Africa's southernmost point when it changed course towards the UK, port data shows.
Malaysia, the world's second-largest LNG exporter, is facing the challenge of reversing declining production from domestic fields and has opened a new import terminal to tackle a projected gas shortage by 2014.
The country's first LNG import cargo, aboard the Seri Angkasa, had been expected to arrive at the country's new Melaka LNG import terminal on September 10. The shipment's diversion to the UK may be explained by delays to the start-up of Melaka LNG, or be part of a cargo swap, one trader suggested.
The vessel can carry up to 145,000 cubic meters of the super-cooled fuel and is currently passing Africa's Cape of Good Hope, according to AIS Live ship-tracking data on Reuters.
Malaysian energy company Petronas has a stake in the Dragon terminal at Milford Haven, so the shipment is more likely headed there than South Hook, the other terminal at the complex.
BG Group jointly owns the Dragon terminal with Petronas.
The Melaka LNG terminal in Malaysia, which will have an annual import capacity of 3.8 million metric tons, is 100 percent-owned and operated by Petronas.
"Once the (Melaka) terminal goes into commercial operation, contractual supplies from GDF Suez and Pluto LNG (in Australia) can be expected this year," independent LNG consultant Andy Flower said in a note this week.
"In fact, the first commissioning cargo was likely sourced from the medium-term supply agreement with GDF Suez," Flower said.
French energy company GDF Suez has the right to export some LNG from the Idku plant.
The vessel may have taken a roundabout route around Africa's Cape of Good Hope instead of going more directly through the Suez Canal because of the wait time for the start-up of the Melaka terminal, Flower added.
Plunging demand for gas in Asia since May, because of cooler than normal temperatures and packed inventories, has also freed up supplies to European terminals, particularly in the UK, Belgium and some French ports.