The ELENI M vessel can be seen after passing through the Suez Canal in Ismailia, Egypt March 24, 2021.
Amr Abdallah Dalsh Reuters
The turmoil caused by a large shipping vessel in the Suez Canal in Egypt – stopping sea traffic through one of the busiest and most important waterways in the world – is unlikely to have a major impact on the gas market. natural leachate (LNG) if not long, according to Wood MacKenzie analyst.
The vessel, named Ever Given, ran aground Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in recitation. Rescue efforts are currently underway with a number of tugs launched to the scene to assist with re-flowering activity, which will take days.
“The impact of this conflict on the LNG market will be limited if the dispute is resolved within a day or two. There were only a few LNG shipments near the Suez Canal when the incident began. At this stage, we will not given what is not expected to be big bottles, if the situation does not go ahead, “said Lucas Schmitt, chief analyst at Wood Mackenzie.
The Suez Canal is a major channel for LNG vessels – with approximately 8% of global LNG trade passing through.
“So far in March 2021 a handful of loads have been moving every day either way (until the riot went away),” Schmitt said.
The 120-mile human waterway is a major center of global trade, connecting a steady flow of goods from East to West. Everything from consumer products to machine parts to oil flows through its waters.
Nearly 19,000 boats passed through the canal in 2020, for an average of 51.5 per day, according to the Suez Canal Authority. The ship Ever Given, was sailing from China to Rotterdam when she ran aground.
The impact on the LNG market would be greater if the unrest continues as the recent delay at the Panama Canal has shown, according to Schmitt. These delays will lead to a spike in LNG prices and shipping rates, according to Reuters.
“However, the timing of this event means that it will have less of an impact on prices than Panama since we are entering the shoulder season for the LNG market,” he said. current low card – around 30 k $ / d – but they could tighten (revealing the extra ton-mile needed to avoid the waterway) if the unrest persists. “
Schmitt said further delays could “affect both loading and distribution schedules and disrupt some flows, mainly to the European market.”