Unusual Australian LNG shipment heads to Europe as region faces energy crisis Data by Bloomberg

A shipment of Australian liquefied natural gas (LNG) appears to be heading to Europe for the first time since 2022, highlighting the region's push to find alternative sources of energy in the wake of reduced Russian pipeline deliveries.

According to ship-tracking data from Bloomberg, the Elisa Ardea vessel, recently docked at the Wheatstone LNG export facility in western Australia, is now signalling Dunkirk, France, as its next destination, Caliber.Az reports.

However, there is uncertainty around the shipment’s contents. The vessel’s draft, which is manually recorded, did not change after departing Wheatstone, suggesting it might not be carrying a cargo of gas. Additionally, it is not guaranteed the vessel will complete its long journey to France.

The loss of Russian pipeline gas flowing through Ukraine since the beginning of the year has significantly increased European demand for LNG. Traders are redirecting shipments away from Asia to Europe, where LNG prices have reached a two-year high.

Demand for LNG in Asia has been weak this year, with importers reducing spot purchases. Meanwhile, plummeting freight rates are making it more cost-effective for LNG ships to take longer journeys when the price is right.

The last time Australia sent an LNG shipment to Europe was in November 2022, following a spike in spot prices after Russia’s invasion of Ukraine. In 2023, Australian LNG exports were primarily directed to Asia.

In December, the European Commission released plans to help member states transition away from Russian gas. The strategy includes sourcing gas from countries like Greece, Türkiye, and Romania via the Trans-Balkan route, while also tapping into Norwegian gas through Poland. Germany is also assisting with gas distribution across central Europe.

The transition presents significant logistical challenges, as it requires reworking long-established gas infrastructure that has relied on Russian supplies since 1991. At its peak, Russia supplied around 35% of Europe’s gas needs.

By Tamilla Hasanova