A cargo of liquefied natural gas (LNG) from Nigeria has been rerouted to Asia after rising regional prices created a lucrative opportunity for traders, Reuters reports.
Data from analytics firm Kpler showed that the tanker BW Brussels, which loaded LNG at Nigeria’s Bonny Island Terminal on February 27, initially signalled a westward journey toward Europe. However, the vessel later altered course, heading south toward Asia via the Cape of Good Hope.
Analysts say the move reflects a growing price gap between Asian and European gas markets, driven by supply disruptions in the Middle East. Asia’s benchmark LNG price surged sharply last week amid ongoing US-Iran tensions and a temporary halt in Qatari production.
According to S&P Global Platts, the Japan-Korea Marker for spot LNG rose 68.5% to $25.39 per million British thermal units (mmBtu) for April delivery—the highest in three years. By comparison, European spot LNG prices for April deliveries climbed about 57% to $15.48 per mmBtu, still leaving Asia as the more profitable market.
“The widening price difference has created arbitrage opportunities for traders, allowing LNG shipments originally destined for Europe to be redirected to Asia,” said Kpler analyst Go Katayama, noting that BW Brussels was one such vessel.
Market watchers also highlighted growing demand in Asia as buyers seek alternatives after Qatar suspended production. India, for instance, is reportedly scouting new LNG sources, while Bangladesh’s state-run Petrobangla plans to issue tenders for prompt deliveries.
Qasim Afghan of Spark Commodities said the price spread between Asian LNG and Europe’s Title Transfer Facility (TTF) in the Netherlands had widened to around $5 per mmBtu in Asia’s favor, making eastern destinations more attractive.
“This likely reflects the widening Atlantic–Pacific arbitrage, with stronger Asian pricing making diversions of flexible cargoes more appealing,” Katayama added, noting that more LNG shipments could follow if the price gap persists.
For Nigeria, the shift underscores the influence of global market signals in determining LNG cargo destinations. Analysts warn that as long as Asian prices remain significantly higher than European benchmarks, more Nigerian LNG shipments may be redirected eastwards in the coming weeks.
