LNG tankers divert to Asia as regional buyers hunt for fuel

The higher European and Asian prices are more than enough to offset the cost of longer distances to move the cargoes to Asia.

"Cargoes have started to be diverted to Asia, away from Europe in recent days, and the prevailing JKM-TTF spreads, averaging much above the US shipping differentials, indicate flexible US cargoes will likely start to come to Asia on stronger netbacks," said Energy Aspects analyst Kesher Sumeet.

While some Asian buyers are delaying spot purchases or not awarding tenders due to elevated prices, others are paying up to secure cargoes.

"Buyers from South Korea, India, Taiwan, Bangladesh, and Thailand have been seeking replacement spot cargoes, though many remain hesitant to award tenders due to high prices or a lack of offers," said Sumeet.