Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296652 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
OIES Paper: NG No. 188
Publisher: 
The Oxford Institute for Energy Studies, Oxford
Abstract: 
With droughts restricting shipping via the Panama Canal since mid-2023, the attacks on vessels in the Red Sea have caused a complete cession in LNG shipping between Europe and Asia via the Suez Canal. This disruption primarily affects LNG supply from the United States, Qatar, Russia, and North Africa. While some cargoes are being diverted to alternative markets, other cargoes are being re-routed via the Cape of Good Hope. The longer round-trips are effectively curtailing LNG shipping capacity, but even if the disruption continues for the whole of 2024, the impact will be a year-on-year reduction in global LNG supply of 1.35 per cent, which explains the lack of reaction from European and Asian LNG benchmark prices. Looking ahead, the cumulative impact of longer shipping times will grow, but will be offset in the second half of 2024 by new LNG supply from West Africa and the re-opening of the Panama Canal after the rainy season.
Subjects: 
Asia
Europe
LNG
Panama Canal
Qatar
Red Sea
Russia
United States
ISBN: 
978-1-78467-231-7
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.