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Russia-Ukraine War 2026
17OCT

Eight LNG cargoes diverted to Asia

2 min read
17:43UTC

Vessel tracking shows Europe losing the cargo-by-cargo competition with Asian buyers, as the JKM-TTF spread collapses to near zero.

ConflictDeveloping
Key takeaway

The JKM-TTF spread at $0.10/MMBtu erases Europe's cost advantage for attracting flexible LNG cargoes.

Kpler vessel tracking data shows eight Atlantic LNG cargoes (five US-origin, three Nigerian) have been diverted from Europe to Asia via the Cape of Good Hope since the conflict began in late February. EU weekly LNG imports fell 15% to 3.3 million tonnes as a result.

Behind the diversions sits the JKM-TTF spread, the gap between Asian spot LNG and the European benchmark. It narrowed to $0.10/MMBtu in early April, effectively zero. When the spread was positive, Europe could outbid Asia for flexible cargoes; at parity, shippers route to whichever buyer offers better terms on a cargo-by-cargo basis. US LNG still accounts for 58% of EU LNG imports under long-term contracts, but spot volumes follow the Asian premium.

Kpler's broader supply arithmetic is tight. Alternative sources cover under two million of the monthly shortfall. That gap persists until Ras Laffan repairs advance or new US export capacity comes online, Europe competes for a shrinking pool of flexible supply.

Deep Analysis

In plain English

Europe normally imports large quantities of liquefied natural gas (LNG) from the United States and West Africa, shipped across the Atlantic Ocean. Eight of those tanker ships have recently been redirected to Asia instead. This is happening because Asian countries are currently paying similar prices to Europe for gas. When there is no significant price advantage for coming to Europe, shipping companies and traders route cargoes to wherever their contracts or logistics make most sense, which right now is Asia.

Deep Analysis
Root Causes

The cargo diversions reflect a structural feature of global LNG contracts: portfolio LNG suppliers (Shell, TotalEnergies, BP) who purchase US LNG under long-term HH-indexed contracts and resell it on the spot market optimise delivery destinations quarterly, not in real time. Once a diversion decision is made and a vessel is en route via Cape of Good Hope, that cargo is effectively committed for 6-8 weeks regardless of subsequent TTF movements.

The five US-origin cargoes in the diversions are almost certainly portfolio volumes from Shell's Sabine Pass offtake or TotalEnergies' Sabine Pass Train 5 contracts. These companies have explicit Asian portfolio commitments that take precedence over spot European sales when Asian demand is elevated.

What could happen next?
  • Consequence

    The near-zero JKM-TTF spread removes Europe's primary market mechanism for attracting flexible spot LNG cargoes, making any further supply disruption directly additive to the storage deficit.

  • Opportunity

    A Hormuz normalisation that resumes Middle East LNG flows could widen the JKM-TTF spread in Europe's favour within weeks, attracting Atlantic cargoes back and accelerating injection season recovery.

First Reported In

Update #1 · Europe's thinnest gas cushion since 2018

Kpler· 13 Apr 2026
Read original →
Causes and effects
This Event
Eight LNG cargoes diverted to Asia
The JKM-TTF spread at $0.10/MMBtu eliminates Europe's traditional price premium for attracting flexible cargoes, turning every spot cargo into a bidding contest.
Different Perspectives
Bulgarian government
Bulgarian government
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Radoslaw Sikorski
Radoslaw Sikorski
Poland's foreign minister challenged Elon Musk on X after SpaceX capped Ukraine's Starshield terminals on 14 October. Poland pays about $50m a year for Ukraine's Starlink subscriptions, so Warsaw speaks as the paying customer as well as the ally.
Andy Burnham
Andy Burnham
Burnham fast-tracked £10m of a £45m air-defence missile delivery when Zelenskyy visited London on 14 October, and his ministers are lobbying allies to ban maritime services for Russian liquefied natural gas. The measure targets insurers and shipowners, many of them in London, rather than the gas itself.
Ministry of External Affairs (India)
Ministry of External Affairs (India)
India's foreign ministry said after the 16 September House vote that New Delhi would take all necessary measures to protect its trade.
European Council
European Council
EU leaders on 15-16 October rejected a US idea to hand Washington the roughly €200bn of frozen Russian assets held in Europe, and Kaja Kallas said the decision belongs to Europeans. The same summit put off a decision on financing Ukraine, saying leaders "will revert to the issue in a timely manner".
Donald Trump
Donald Trump
Trump signed the 16 October order that sets the Graham Act's duties and waives them under section 115(a), with a certification sent to Congress. He says the United States has not stopped sharing intelligence with Ukraine, and on 11 October he said both sides had agreed to halt attacks on energy infrastructure.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.