19:24 27 December 2021
US LNG cargoes have destinations set for Europe
The gas price on European stock exchanges fell by more than 40 percent in two days. This is the result of reports that American tankers filled with LNG, i.e. liquid gas, are headed to Europe.
On Christmas Eve in the morning, the price of the Dutch TTF contract (which is the benchmark for Europe) for gas supplies in January was €115. In the early afternoon, it had already fallen to €101. It's about 23 percent less than at the close of trading the day before and as much as 41.4 percent less compared to Wednesday's quotes.
The situation has changed dramatically after news that American tankers filled with LNG are headed towards Europe. Bloomberg reported that at least 10 ships are heading towards the Old Continent, another 20 are crossing the Atlantic, but have yet to declare their final destinations.
US loads of liquefied natural gas will help offset smaller flows from Russia, the main supplier in Europe, Bloomberg noted.
