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They report that gas ships off the coast of Spain expect a price increase

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For several weeks now, dozens of boats transporting this resource have been circling off the coast of the Iberian Peninsula and in the Mediterranean Sea.

Dozens of ships transporting liquefied natural gas (LNG) are off the Bay of Cádiz (Spain) and are likely to remain there until the end of November, waiting for a foreseeable increase in the prices of this resource in Europe , Reuters reported on Wednesday, citing industry sources.

The agency indicates that for several weeks these types of vessels have been circling off the coast of the Iberian Peninsula and in the Mediterranean Sea, unable to secure spaces to unload their cargoes because the plants that convert supercooled fuel into gas are operating at maximum capacity.

Likewise, it indicates that the high volume of LNG in floating storage reveals the lack of ‘regasification’ capacity in the Old Continent at a time when countries are supplying themselves for get through the winter with a considerably reduced amount of gas imported from Russia.

” They are expecting higher prices,” said one of the people familiar with the matter. “If a single stalled vessel unloads its cargo, the price will collapse immediately by affecting the other cargoes in the queue, and this domino effect is very painful in terms of opportunity cost,” he added.

What explanation do you offer?

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A spokesman of the Spanish company Naturgy, owner of three of the ships that are in this situation, explained that they are waiting for the unloading slots assigned in Spain. However, an industry source stated that recently there have been no problems with the respective schedules.

According to the Norwegian consulting and analysis company Rystad Energy, the prices of natural gas in Europe are at their lowest level since June, falling by 28 % in one week , in part due to high inventory levels and higher than usual temperatures.

Some of the vessels that have been waiting in the Mediterranean since last month recently moved in the direction of the terminals in northwestern Europe and the United Kingdom, reported the data intelligence firm ICIS.

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