- Four laden LNG carriers pass the canal, steady from July.
- TotalEnergies, Shell and New Fortress Energy cargoes highlight August flows.
- Ballast LNG transits hold flat for third straight month.
The number of LNG tanker transits, both laden and unladen, through the Panama Canal in August held steady compared to July, as reported by S&P Global Commodity Insights and S&P Global Commodities at Sea. Four laden LNG carriers made their way through the canal, matching July’s figures and showing an increase from two in both June and May. These included two shipments from US terminals, one from the US-Mexico border and another from Peru, reports S&P Global.
Details of August Shipments
The Maran Gas Marseille, chartered by TotalEnergies, kicked off the August transits on August 6 after loading up at the Cameron export facility in Louisiana. This carrier delivered about 74,000 metric tons of LNG to the Boryeong import terminal in South Korea on August 27. Following that, on August 7, the Pacific Success, also under TotalEnergies’ charter, passed through the canal on its way to the Tongyeong import terminal in South Korea, carrying a cargo sourced from the Freeport LNG facility.
The Energy Endurance, chartered by New Fortress Energy, transported a mixed cargo from the Altamira FLNG terminal in Mexico and Elba Island in Georgia. It transited the canal on August 14 and offloaded at La Paz, Mexico, on August 20. The final laden transit occurred on August 17 when the Shell-chartered Maran Gas Agamemnon transported a Peruvian LNG cargo to Altamira, marking the first exports of Peruvian LNG to Latin America since January 2024.
Ballast Transits Remain Steady
In August, three ballast LNG carriers also made their way through the canal, which is consistent with the numbers from July and June. All three vessels travelled northbound, returning unladen to US LNG export terminals after their deliveries in Mexico, Japan, and Chile.
Cape of Good Hope Remains a Preferred Route
In August, 18 US LNG cargoes heading to the Asia-Pacific region opted for the longer journey around Africa’s Cape of Good Hope instead of using the Panama Canal. The canal has been facing reduced traffic since a prolonged drought that lasted from mid-2023 to 2024. While container and LPG flows have seen some improvement, LNG transits are still lagging behind pre-drought levels.
Market participants note that weak LNG freight rates and limited summer demand in Asia have further reduced canal usage. Shippers often find the Cape of Good Hope a more attractive option despite the longer voyage.
Market Insights
“The arb has been poor for a long time. Around 90–95% of LNG carriers go via the Cape,” an LNG charterer said.
An LNG slot that reportedly sold for around $1.7 million at a mid-August auction is not seen as a demand signal. “There is always tightness happening around the canal,” a broker said. Platts assessed the FOB Gulf Coast Marker at $10.17/MMBtu on Sept. 8, up 40 cents day over day, while arbitrage to North Asia was valued at minus 30.8 cents/MMBtu via the Cape and minus 19.5 cents/MMBtu via the Panama Canal.
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Source: S&P Global
