Brussels (The Palestine Telegraph Newspaper) January 27,
2026 – European energy companies have purchased liquefied natural gas
cargoes from Australia to offset supply disruptions from a severe US snowstorm
affecting pipelines. The storm paralysed major transmission networks across the
eastern United States. Australian cargoes rerouted to European terminals
provide immediate replacement volumes.
Cargo bookings commenced Monday as US production facilities
curtailed output due to weather conditions. TotalEnergies and Shell confirmed
Australian LNG liftings destined for Zeebrugge and Gate terminals respectively.
Pipeline operators reported 40 per cent capacity reductions across Appalachian
networks feeding Gulf Coast export plants.
US Snowstorm Impact on Natural Gas Infrastructure
Winter Storm Ezekiel dumped 24 inches snow across
Pennsylvania, West Virginia, Ohio triangle. Freezing temperatures reached minus
20 degrees Fahrenheit contracting steel pipelines. Williams Companies reported
Transco mainline forces majeure on 12 segments.
Dominion Energy declared emergencies suspending compressor
stations. Texas Eastern Transmission shut eight facilities protecting equipment
from freeze-offs. Appalachian Storage Pool injections halted indefinitely
pending thaw forecasts. LNG export terminals Sabine Pass, Corpus Christi
reduced cargoes 50 per cent.
Australian LNG Cargoes Diverted to Europe
Woodside Energy diverted two Pluto LNG cargoes originally destined Asia. Santos redirected Narrabri cargoes from Chinese buyers to European spot market. Chevron Gorgon cargo accepted Eni trading desk for Montoir terminal delivery.
Spot prices JKM Rotterdam differential widened $2 per MMBtu
reflecting rerouting premiums. Australian producers cited flexible contracts
enabling European diversion. Eight additional cargoes scheduled February
loading windows.
European Terminal Reception Capacity
Zeebrugge Fluxys terminal increased regasification rates 20
per cent accommodating Australian arrivals. Gate Rotterdam expanded vapour
return operations handling high ethane content cargoes. Montoir St Nazaire
prioritised Australian volumes over Middle East spot offers.
South Hook and Isle of Grain coordinated berth swaps freeing
Australian compatible berths. Inkoo Finland floating terminal activated backup
Australian supply chain. Barcelona and Marseille coordinated sequential unloads
optimising truck loadings.
Major European Buyers Confirm Purchases
TotalEnergies lifted two Woodside cargoes valued $120
million delivered February. Shell secured three Santos cargoes under flexible
destination clauses. Eni accepted Chevron Gorgon cargo optimising winter demand
peak. BP trading desk booked APLNG cargo for Dragon terminal.
German importers Uniper, RWE entered Australian spot tenders
first time since 2024. Italian Edison, Snam finalised Gorgon cargo pair for
Adriatic terminals. Spanish Repsol diverted Australian volume from Barcarena
Brazil transshipment.
Pipeline Operators Issue Force Majeure Notices
Transcontinental Gas Pipe Line force majeure Zones 5, 6 effective January 25. Columbia Gas Transmission suspended 2 Bcf daily deliveries Pennsylvania markets. Tennessee Gas Pipeline shut compressor stations Tennessee Valley Corridor.
Algonquin Citygate prices spiked $15 per MMBtu reflecting
delivery failures. Waha Hub differentials inverted minus $1.50 amid Permian
freeze-offs. Haynesville production curtailed 30 per cent daily rate.
Australian Production and Export Volumes
Pluto LNG facility maintained 4.6 MTPA nameplate capacity despite cyclone watches. Gorgon trains 1-3 operated full rates 15 MTPA annualised. Ichthys ramped cargo loadings offsetting Darwin maintenance outage.
APLNG domestic contracts renegotiated freeing spot cargoes
Europe. Wheatstone cargoes redirected from Japan winter demand weakness.
Prelude FLNG accelerated loading cycle accommodating European bids.
Spot Market Price Reactions Across Regions
TTF prompt prices rose €3 per MWh Australian cargo news. JKM
futures curve backwardation deepened $1.50 reflecting diversion premiums. Henry
Hub frozen deliveries pushed Nymex front month $0.80 higher.
Californian SoCal Citygate premiums widened $4 amid pipeline
rationing. European storage injection rates prioritised Australian cargoes over
pipeline nominations. TTF storage curve flattened reflecting replacement supply
confidence.
Contractual Mechanisms Enabling Diversions
Free-on-board contracts permitted cargo redirection without
penalties. Destination clauses waived for force majeure invoking buyers. Profit
sharing clauses activated excess spot margins Australian producers.
Take-or-pay obligations reallocated pipeline shortfalls LNG
cargoes. Diversion fees capped 5 per cent cargo value European destinations.
Cargo insurance adjusted Australian-European routing mid-voyage.
Receiving Terminal Technical Accommodations
Australian LNG ethane content 8 per cent required vapour
return systems. Regasification heaters upgraded handling higher heating values.
Truck loading bays prioritised power generation nominations.
Floating storage units deployed Wilhelmshaven buffering
sequential arrivals. Pipeline nominations adjusted minimising curtailments
adjacent networks. Grid balancing services remunerated Australian cargo
flexibility premiums.
US Domestic Market Supply Disruptions
Northeast power pool load shedding avoided through emergency
generation. PJM capacity payments triggered 12,000 MW winter reliability
reserves. ISO New England imported 500 MW Canadian hydro offsetting gas
shortages.
Texas ERCOT grid maintained reserves activating 3,000 MW gas
peakers. California CAISO rolling blackouts avoided battery discharge
coordination. Midwest MISO activated interruptible loads protecting residential
heating.
Weather Forecasts Influencing Trading Decisions
GFS model
predicts Appalachian thaw commencing January 30 restoring 50 per cent
capacity. ECMWF ensembles maintain cold bias extending LNG demand through
February. Australian cyclone risks rated low impacting February loading
schedules.
Jet stream patterns favour European cold snap synchronising
Australian arrivals. US East Coast nor'easter forecast accelerates spot cargo
competition.
Historical Precedents for Weather-Driven Diversions
2021 Winter Storm Uri diverted six Gulf cargoes to Europe. 2024 Ukraine transit halt redirected six Qatar cargoes northwest Europe. 2018 Polar Vortex prompted three Australian cargoes UK terminals.
Storage Injection Optimisation Strategies
European operators maximised injection rates 90 per cent
capacity utilisation. Strategic reserves released 10 TWh balancing Australian
cargo timing. German UGS facilities prioritised high-calorific Australian
blends.
Italian cavern storage coordinated sequential unloads
optimising boil-off gas. Dutch NGT field ramped compression supporting
northwest Europe deliveries.
Power Generation Fuel Switching Patterns
Gas-fired plants reduced loads 15 per cent favouring coal
co-firing. French nuclear fleet ramped 4 GW offsetting gas import shortfalls.
Swedish hydro maximised exports balancing continental deficits.
UK Drax biomass conversion accelerated absorbing Australian
cargo energy. Italian Enel optimised hydro-gas merit order preserving storage
injections.
Carbon Intensity Comparison Australian LNG
Australian LNG Scope 1 emissions average 40 kgCO2e per
MMBtu. US Permian LNG methane intensity exceeds 50 kgCO2e baseline. Gulf Coast
facilities optimise combined cycle efficiencies minimising indirect emissions.
EU ETS compliance costs Australian cargoes €5 per tonne CO2
equivalent. TTF carbon adjusted pricing discounts US shale cargoes methane
premiums.
Terminal Throughput Records Set During Crisis
Gate terminal achieved record 1 Bcf daily regasification
Australian cargo. Isle of Grain consecutive unload streak reaches 14 cargoes.
Barcelona twin skid regasifiers operated maximum simultaneous capacity.
South Hook ramped truck loadings 30 per cent supplying emergency power stations.