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A shipment of liquefied natural gas (LNG) from Nigeria has been rerouted to Asia after a sharp rise in regional prices made the Asian market more profitable for traders, according to a report by Reuters.
Shipping data from analytics firm Kpler showed that the LNG tanker BW Brussels, which loaded cargo at the Nigeria LNG terminal in Bonny Island on February 27, initially indicated it was heading toward Europe. However, the vessel later altered its route and is now sailing south toward Asia through the Cape of Good Hope.
Market analysts say the change in destination reflects a growing price gap between Asian and European gas markets, triggered by supply disruptions in the Middle East.
Reuters reported that Asia’s benchmark LNG price climbed significantly last week as tensions linked to the conflict between the United States and Iran, along with a halt in production in Qatar, tightened global supply.
Figures from S&P Global Platts showed that the Japan-Korea Marker (JKM) for spot LNG deliveries in April rose by 68.52 per cent to $25.393 per million British thermal units, its highest level in three years.
In contrast, spot prices for LNG deliveries to northwest Europe increased by about 57 per cent to $15.479 per mmBtu for April, leaving Asian buyers willing to pay a higher premium for cargoes.
Analysts noted that the widening price difference has created arbitrage opportunities, encouraging traders to redirect shipments originally meant for the Atlantic Basin to Asia.
Kpler principal insight analyst Go Katayama said the BW Brussels initially signalled a route toward France before changing course on March 3 and heading toward Asia.
He explained that the shift reflects the growing Atlantic-Pacific price gap, which is making it more attractive for traders to divert flexible LNG cargoes to markets offering higher returns.
Spark Commodities analyst Qasim Afghan also noted that front-month arbitrage opportunities have expanded considerably, opening the door for shipments from several major LNG exporting regions to be redirected to Asia.
According to market data, the price difference between Asian LNG and Europe’s benchmark gas hub, the Title Transfer Facility in the Netherlands, has widened to about $5 per mmBtu in Asia’s favour.
The tighter global LNG market has also pushed Asian importers to seek alternative sources of supply following disruptions to exports from Qatar, one of the world’s largest LNG producers.
Government sources told Reuters that India is currently searching for alternative LNG suppliers to replace reduced Qatari deliveries, while Bangladesh’s state-owned Petrobangla plans to issue tenders for immediate LNG cargoes.
Energy analysts at S&P Global said buyers in the Asia-Pacific region are expected to remain aggressive in the spot market as they compete for limited supplies.
Despite the higher prices in Asia, Europe could still secure some flexible cargoes due to the deep liquidity of its Title Transfer Facility market, which allows traders to hedge price risks more effectively.
Analysts said the diversion of the Nigerian cargo demonstrates how rapidly changing global prices can reshape LNG trade routes. If the price gap between Asia and Europe persists, more shipments from Atlantic Basin producers may be redirected toward Asian markets in the coming weeks.