Europe is currently benefiting from the closed arbitrage between the U.S. Gulf Coast and Asia and is taking more LNG supplies in possible relief from concerns about winter gas supply. The Atlantic-Pacific arbitrage is closed for the rest of this year, due to high shipping costs, and this has led to a redirection of most U.S.
spot cargoes toward Europe, where the freight costs are much lower. Over the past month, Europe has been drawing more LNG cargoes away from Asia, and deliveries to Europe have been only 4% lower than a year ago, compared to…