More than 60 LNG tankers are idle off the coast of Europe

More than 60 US LNG tankers are idle around northwestern Europe, the Mediterranean and the Iberian Peninsula.

As a result of russia’s energy blackmail on the eve of winter, EU taps needed alternative sources of natural gas. The US has increased LNG exports to Europe to help countries on the continent overcome the energy crisis. But currently, traffic jams are created from tankers. Vessels are waiting to be unloaded in European ports that are unable to handle such large volumes of LNG.

“These delays are postponing the return of tankers to the Gulf Coast to pick up the next cargo and, as a result, natural gas inventories are increasing more than the market expected,” commented Andrew Lipow, president of consulting firm Lipow Oil Associates.

The problem of port infrastructure in Europe is the lack of regasification plants and pipelines connecting countries with regasification capacities. As a result, the amount of LNG in floating storage is increasing, which in turn lowers the price of natural gas, reports Hellenic Shipping News.

The occupancy of European gas storages continues to grow and now exceeds 93%.

The price limit potentially pushes traders out of the market, which will affect future supplies to Europe,” said CEO of oil and gas company ClearView Energy Partners LLC, Jacques Rousseau.

European gas prices soared above 340 euros per megawatt hour in late August, but fell below $100 this week for the first time since Russia cut gas supplies. Before the war, the price was only 30 euros per megawatt-hour.