LNG

Shipping companies and LNG portfolio players are slowly returning to the Panama Canal, where a two-year drought restrained traffic. As northern-hemisphere winter weather is sending natural gas demand soaring, most US LNG cargoes are currently looking for a home in Europe and avoid having to queue up for a costly Panama Canal transit.

Though start-up of the $5.2 billion Panama Canal expansion is scheduled for January, it may be difficult to accommodate 30 mtpa of LNG from the US Gulf Coast and Trinidad and Tobago - equivalent to 1 LNG ship per day, each way - to reach Pacific via the shortest route, Wood Mackenzie warns.