* China's LNG demand soars as households switch to gas for
* Japan re-exports LNG to China in unusual move
* Tankers from the Americas divert to China
* North Asia braces for frigid winter as La Nina starts
* Supply crunch pushes up LNG prices, tanker rates
By Henning Gloystein and Keith Wallis
SINGAPORE, Dec 15 (Reuters) - Liquefied natural gas (LNG) is
being re-exported to China from Japan and tankers are being
diverted from as far away as Brazil, with traders rushing to
find cargoes in the face of a supply crunch in the world's No.2
economy as winter bites.
Following an unprecedented drive to switch millions of
households to natural gas from coal for heating, China's imports
of LNG have surged as utilities struggle to meet soaring demand
as winter gets off to a colder start than usual.
"We expect to see many more LNG cargo diversions to China
over the winter period," said Saul Kavonic, an analyst at energy
consultancy Wood Mackenzie in Singapore.
"Given China's ... limited gas storage, it will be
particularly reliant on spot LNG purchases to meet demand."
Chinese imports now include cargoes from Japan, itself by
far the world's biggest consumer of LNG, and which is also
The 150,000 cubic metre (cm) Neo Energy left Japan's Shimizu
terminal on Dec. 1 and delivered LNG this week to the floating
storage and regasification unit (FSRU) Cape Ann, which is
sitting outside the port of Tianjin in eastern China, shipping
data in Thomson Reuters Eikon showed.
A spokeswoman for Japan's Shizuoka Gas said the
company was "involved in re-export business on a day-to-day
This Chinese demand has pushed up spot LNG prices <LNG-AS>
by more than 80 percent from their 2017 lows to above $10 per
million British thermal units (mmBtu), a January 2015 high.
That puts spot prices significantly above LNG prices linked
to the price of Brent crude oil, which are trading around $8 per
"If you usually import under long-term deals linked to oil
markets and have available cargoes, this is the time you'd want
to sell," said an LNG trader, speaking on condition of anonymity
as he was not allowed to talk about commercial deals.
The urgent need for spot cargoes has also boosted rates for
The daily rate for a 160,000 cm LNG tanker has shot up to
$80,000 this month from a 2017 low of $30,000 in April,
according to data from ship broker Clarkson and Fearnley.
This has led to a jump in share prices of listed LNG tanker
owners like Gaslog and Teekay LNG Partners.
ACROSS THE PACIFIC
Thanks to much lower prices in the America's, LNG
cargoes are also coming from across the Pacific.
The 147,000 cm Esshu Maru tanker was initially scheduled to
deliver U.S. LNG from Cheniere Energy's Sabine Pass to
Pecem in Brazil on Dec. 22, but it was diverted to the Pacific,
passing the Panama Canal this week, shipping data showed.
Another LNG tanker, the 148,000 cm Gaslog Santiago, had been
making supply runs in the Americas in the past month, but is
about to enter the Panama Canal and then the Pacific Basin for
the first time in at least half a year.
Its destination in the Pacific was not immediately clear.
Compounding China's gas shortage is the La Nina weather
pattern, which triggers cold winters in Asia's northern
Weather data in Thomson Reuters Eikon shows average daily
temperatures in Beijing of minus 6 degrees Celsius this week,
around 2 degrees below the seasonal norm.
Cold weather is also dominating Japan and South Korea,
meaning by far the world's three biggest LNG importers are
seeing a winter demand spike, which will likely support LNG
prices for the coming months, traders said.
(Reporting by Henning Gloystein and Keith Wallis in SINGAPORE;
Additional reporting by Osamu Tsukimori in TOKYO; Editing by
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