Energy traders redirect shipments amid soaring LNG prices and supply fears following disruptions around the Strait of Hormuz….
A shipment of Liquefied Natural Gas (LNG) from Nigeria has been redirected from Europe to Asia as global buyers scramble for alternative supplies following disruptions linked to the ongoing conflict in the Middle East.
The diversion highlights how rapidly shifting market conditions are reshaping global energy trade routes as countries compete for available LNG cargoes.
Shipping data from analytics firm Kpler shows that the LNG carrier Pan Americas, which loaded its cargo at the Bonny LNG Terminal in southern Nigeria, was initially bound for Croatia before abruptly changing course.
Instead of heading toward Europe, the vessel turned south and began sailing toward Asian markets via the Cape of Good Hope, reflecting the strong demand and higher prices currently available in Asia.
The rerouting marks the second such diversion recorded within days, underscoring the intense competition for LNG shipments in the global market.
The scramble for supply intensified after hostilities escalated following U.S. and Israeli strikes on Iran, which began on February 28. The conflict has disrupted maritime traffic through the Strait of Hormuz, a crucial energy corridor used by major oil and gas exporters.
The disruption has significantly affected shipments from Qatar, the world’s second-largest LNG exporter after the United States.
With Qatari supplies constrained, buyers across Europe and Asia have begun competing aggressively for spare cargoes available on the market.
The sudden tightening of supply has sent natural gas prices soaring across major markets. Prices have climbed roughly 50 percent compared to the same period last year, reflecting growing fears of prolonged supply shortages.
European energy markets reacted sharply at the start of the week, with gas prices rising by as much as 30 percent on Monday as the conflict rattled traders and raised concerns about the stability of Middle East energy flows.
Another Nigerian cargo was also redirected earlier in the week.
The LNG tanker BW Brussels, which loaded a shipment at the Bonny Island facility on February 27, initially signaled it was heading west toward Europe. However, the vessel later altered its course and sailed south toward Asia through the Cape of Good Hope.
Benchmark indicators reflect the rapid surge in global gas prices.
The Dutch TTF Natural Gas Benchmark, widely used as Europe’s reference price for natural gas, rose sharply to 69.50 euros before easing slightly.
Meanwhile, the Japan-Korea Marker, which tracks spot LNG cargo prices for delivery to Northeast Asia, surged by more than 68 percent to $25.393 per million British thermal units for April delivery—its highest level in three years, according to data from S&P Global Platts.
By comparison, spot LNG prices for deliveries to northwest Europe rose by about 57 percent to $15.479 per mmBtu for April.
Although Europe has also experienced a strong price rally, Asian buyers currently offer higher returns for flexible cargoes, making the region a more attractive destination for suppliers.
According to Kpler, Asian countries typically account for more than 80 percent of LNG shipments exported by Qatar, meaning disruptions there have an outsized effect on the region’s energy supply.
The resulting shortage has triggered fierce competition between markets in the Atlantic and Pacific basins as buyers search for replacement cargoes.
For Nigeria, the recent diversions highlight the influence of global price signals on LNG trade, where shipments can be rerouted quickly to whichever market offers the most competitive pricing.
Nigeria’s LNG export earnings have already shown strong growth this year. The country generated approximately $2.7 billion in gas export revenue in the first quarter of 2025, representing a 27 percent increase from the previous quarter and an 86 percent jump compared with the same period last year.
The surge has been driven largely by higher production levels and stronger global demand for LNG.
Looking ahead, the Federal Government is aiming to significantly expand gas exports, targeting $10 billion in annual revenue from the sector.
Officials say growing demand from the United States and progress on the Nigeria LNG Train 7 Project, which is currently about 80 percent complete, are expected to play a key role in boosting Nigeria’s LNG output and export capacity in the coming years.
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