LNG

The British government is anticipated to announce new sanctions today targeting Russia’s illicit shadow fleet for oil and LNG, following the interception of a sanctioned Russian oil tanker in the Channel on Sunday. The move could disrupt a segment of LNG trade that relied on opaque shipping and financing channels.

LNG remains central to Britain’s energy security though the nation’s gas system faces an “emerging risk” to supply, the National Energy System Operator (NESO) warns. Imported LNG helps cushion the network during winter peaks, but NESO’s latest Gas Security of Supply Assessment urges the government to prepare for potential disruptions.

As Asian utility buyers have covered their summer LNG demand, Qatargas is diverting more cargoes to the UK, adding length to an oversupplied market which is likely to exacerbate the 28% drop in gas prices at the NBP since April.