The first liquefied natural gas (LNG) cargo exported from a new plant in the United States at Cove Point will be delivered to the UK rather than to Asia. The news that tanker Gemmata was now expected at the UK’s Dragon terminal on March 20th came as Asian spot LNG prices weaken relative to European benchmarks. Gemmata performed a U-turn in the middle of the Atlantic this week away from Asia and towards Europe, shipping data showed.
The spy poisoning scandal in the UK has led to fears that the UK will rely less on Russia-sourced LNG and would therefore have to pay more on the open market for its supplies. Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the UK last year.