The number of both laden and unladen LNG tanker transits through the Panama Canal in August remained unchanged from July, partly driven by Latin American buyers and limited arbitrage opportunities to Asia, data from S&P Global Commodity Insights and S&P Global Commodities at Sea(opens in a new tab) showed Sept. 8.
Four laden LNG carriers transited the canal in August, the same as in July and up from two in both June and May.
Two of the August transits originated from US export terminals, while another was partly sourced from the US and partly from Mexico. The remaining one was sourced in Peru. Two carriers were destined for Asia, while the other two were delivered to Mexico, based on CAS data. Three of the transits were completed southbound, while the other marked the first northbound transit since at least June of last year.
The TotalEnergies-chartered Maran Gas Marseille, which loaded at the Cameron export facility in Louisiana at the end of July, completed the first August transit through the canal on Aug. 6. The carrier delivered around 74,000 mt of LNG to the Boryeong import terminal in South Korea on Aug. 27, based on Commodity Insights data.
On Aug. 7, the Pacific Success, also chartered by TotalEnergies, completed a laden transit through the canal on its way to the Tongyeong import terminal, also in South Korea. The cargo was sourced from the Freeport LNG facility and delivered earlier this month.
The New Fortress Energy-chartered Energy Endurance, loaded with a cargo sourced from both the Altamira FLNG terminal on Mexico’s Gulf Coast and Elba Island in Georgia, transited the canal on Aug. 14. The carrier delivered its cargo at the La Paz import terminal on Mexico’s Pacific Coast on Aug. 20.
The fourth and last laden transit was completed northbound by the Shell-chartered Maran Gas Agamemnon on Aug. 17, en route to deliver a cargo to the Altamira import terminal on Mexico’s Gulf Coast. This cargo loaded from the Shell-owned Peru LNG terminal, marking the first Peruvian exports to Latin America since January 2024.
Meanwhile, three ballast LNG carriers made transits through the canal in August, unchanged from July and June. The three carriers that transited northbound returned unladen to US LNG export terminals after deliveries in Mexico, Japan, and Chile, respectively.
In comparison, 18 US LNG cargoes exported to Asia-Pacific in August opted for the longer route around Africa’s Cape of Good Hope.
The Panama Canal faced a prolonged drought between mid-2023 and 2024, which significantly slashed transits during that period. While container and LPG vessel traffic has reportedly improved, LNG transits have not returned to pre-drought levels.
Market sources previously said weak LNG freight rates have made the Cape of Good Hope a more attractive option for shippers. Weak summer demand in Asia has also limited Panama Canal transits, sources said.
“The arb has been poor for a long time. Around 90–95% of LNG carriers go via the Cape,” an LNG charterer said.
An LNG slot that reportedly sold for around $1.7 million at a mid-August auction is not indicative of an upcoming demand increase, a broker said.
“There is always tightness happening around the canal,” the broker said.
Platts, part of S&P Global Commodity Insights, assessed the FOB Gulf Coast Marker at $/MMBtu Sept. 8, up 40 cents day over day.
Platts assessed the arbitrage to North Asia vs Atlantic for US loading transiting via the Cape of Good Hope at minus 30.8 /MMBtu on Sept. 8. Meanwhile, the arbitrage to North Asia vs Atlantic for US loadings transiting via the Panama Canal was assessed at minus 19.5 /MMBtu on the same day
Source: Platts
