LNG tanker traffic through the Panama Canal declined in November, reflecting a shift in U.S. LNG exports toward European markets, reports Platts.
Only three laden LNG carriers transited the canal during the month, down from four in October, though still higher than the single transit recorded in September. There were no LNG crossings during the first three weeks of November.
Details of November Transits
Among the three laden LNG transits, two were bound for Asia-Pacific markets, while one was destined for the west coast of Mexico — marking the first Latin-American bound transit since August.
The first crossing, carried out on November 23 by the Celsius Galway, loaded at Louisiana’s Sabine Pass terminal before transiting the canal. The second transit, by Marvel Swan on November 24, loaded at Cameron LNG in Louisiana and was headed to Japan. The final crossing on November 29, by GasLog Singapore, moved LNG from Mexico’s Gulf Coast to the Pacific coast and then south toward Panama.
Shift in LNG Demand
Only one unladen (ballast) transit was recorded in November, matching October’s count but down from three each month between June and September.
The decline in canal transits coincides with changing LNG demand patterns. In November, a significant portion of U.S. LNG exports was directed to Europe as cargoes previously destined for Asia opted for Atlantic routes. European demand, competitive pricing, and favorable market conditions contributed to this shift.
Historically, LNG flows through the Panama Canal rise when price spreads favor Asia or when shipping capacity is constrained. However, with demand concentrated in Europe this November and shipping economics favoring Atlantic routes, the canal’s function as a major LNG corridor has temporarily diminished.
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Source: Platts
