By Adedapo Adesanya

A cargo of liquefied natural gas (LNG) from Nigeria has been diverted to Asia after a surge in prices created an arbitrage opportunity for traders.

According to a report by Reuters, citing data from analytics firm Kpler, the LNG tanker BW Brussels, which loaded a shipment at the Nigeria LNG Bonny Island Terminal on February 27, initially signalled a westward journey toward Europe before altering its route and heading south toward Asia via the Cape of Good Hope.

According to Reuters, Asia’s benchmark LNG price surged sharply last week as the ongoing conflict between the United States and Iran and a production suspension in Qatar tightened global supply.

The benchmark Japan-Korea Marker for spot LNG cargoes jumped by 68.52 per cent to $25.393 per million British thermal units for April delivery last Tuesday, its highest level in three years, according to S&P Global Platts.

In comparison, spot LNG prices for deliveries to northwest Europe rose by about 57 per cent to $15.479 per mmBtu for April, reflecting a strong rally but still leaving Asia as the more lucrative destination for flexible cargoes.

The widening price spread between Asia and Europe has opened arbitrage opportunities for traders to redirect LNG shipments from the Atlantic Basin to Asian buyers willing to pay a premium.

“So far, one LNG tanker that loaded in Nigeria last week has diverted to Asia from its initial Atlantic-bound course after spot prices surged. The BW Brussels LNG tanker loaded a cargo from Bonny LNG in Nigeria on February 27 and was moving west before turning to head south on March 3, data from Kpler showed.

“BW Brussels appears to have changed course from an initial signal toward France and is now heading toward Asia via the Cape of Good Hope,” Reuters reported, quoting a principal insight analyst at Kpler, Mr Go Katayama.

Spark Commodities analyst, Mr Qasim Afghan, said global front-month arbitrage opportunities had “increased significantly” and were now open to Asia across several major LNG export locations.

He added that the price differential between Asian LNG and Europe’s benchmark gas hub, the Title Transfer Facility in the Netherlands, had widened to about $5 per mmBtu in favour of Asia.

The diversion of the Nigerian cargo highlights how rapidly shifting global prices can alter LNG trade flows, particularly for shipments with flexible destination clauses.

“This likely reflects the widening Atlantic–Pacific arbitrage, with stronger Asian pricing making diversions of destination-flexible Atlantic cargoes more attractive,” Mr Katayama said, noting that more cargoes could follow if the price spread persists.

It was gathered that the tightening market has also prompted Asian buyers to scramble for alternative supplies following the disruption to Qatari exports.

Government sources told Reuters that India is scouting for alternative LNG sources to replace lost Qatari supply, while state-run energy company Petrobangla plans to issue tenders for prompt LNG cargoes.

Analysts at S&P Global Energy said Asia-Pacific buyers were likely to be the most aggressive in the near-term spot market as they compete to secure supply

However, they noted that Europe could still attract some flexible cargoes because of the deep liquidity in the TTF financial market, which allows traders to hedge risks more easily.

Qatar is one of the world’s largest LNG exporters, and Asian buyers account for more than 80 per cent of its shipments, according to Kpler data. The disruption to production there has tightened supply and triggered intense competition between the Atlantic and Pacific basins for available cargoes.

For Nigeria, the shift underscores the role of global price signals in determining cargo destinations in the highly flexible LNG market.

Industry analysts say that if Asian prices remain significantly higher than those in Europe, more LNG shipments from Atlantic producers could be redirected eastwards in the coming weeks.

By Adedapo Adesanya

Brent crude prices broke above $100 per barrel for the first time in nearly four years on Monday as the Iran conflict escalated.

At the time of filing this report, Brent crude rose 13.9 per cent to $105.60 per barrel while the US West Texas Intermediate (WTI) crude was trading at $100.66, up 10.7 per cent.

The rally follows a dramatic escalation in the conflict between Iran, the United States, and Israel over the weekend, with attacks on energy infrastructure and military targets across the region heightening fears that oil flows from the Middle East could be disrupted for weeks.

Israel struck major fuel storage facilities near Tehran, while Iran continued launching drone and missile attacks across the region. A drone strike damaged a desalination plant in Bahrain, a missile barrage injured five people in central Israel, and a seventh US service member died following an Iranian counterattack in Saudi Arabia.

Meanwhile, Iran’s Assembly of Experts named Ayatollah Mojtaba Khamenei, the son of the slain Supreme Leader Ali Khamenei, as the country’s new supreme leader early on Monday.

The appointment signals continuity in Iran’s hardline leadership, undermining the efforts of both the US and Israel to alter the regime.

The fears of prolonged supply disruptions, including potential attacks on regional energy infrastructure and tanker traffic, are now being priced in to markets. Energy traders are closely watching whether the conflict will affect production or exports from major Gulf producers.

The surge in crude prices has also strengthened the US Dollar and raised fears of an energy-driven inflation shock, particularly for major oil-importing economies.

For Nigeria, which is Africa’s largest oil producer, the development has led to worries with higher prices sparking higher petrol cost, with the pump price currently retailing for as low as N1,025 and as high as N1,200 per litre across some fuelling stations.

Last week, an analysis forecast that Nigeria would be one of the winners of the windfall with prices at $85 per barrel, but with prices now at three-digit values, the dimension has changed.

By Dipo Olowookere

Last week on the floor of the Nigerian Exchange (NGX) Limited, investors transacted 3.695 billion shares worth N177.687 billion in 370,980 deals compared with the 5.494 billion shares worth N196.709 billion traded in 370,233 deals a week earlier.

In the five-day trading week, the financial services industry led the activity chart with 2.444 billion stocks sold for N72.029 billion in 145,628 deals, contributing 66.14 per cent and 40.54 per cent to the total trading volume and value, respectively.

The energy sector exchanged 326.073 million equities valued at N39.510 billion in 36,458 deals, and the services segment traded 218.374 million shares worth N2.012 billion in 18,575 deals.

It was observed that Jaiz Bank, Fortis Global Insurance, and Access Holdings were the busiest, with 661.242 million units valued at N8.062 billion executed in 38,534 deals, contributing 17.90 per cent and 4.54 per cent to the total trading volume and value apiece.

Business Post reports that 44 stocks gained weight in the week versus 32 stocks of the preceding week, while 58 equities lost weight versus 69 equities a week earlier, and 46 shares closed flat versus 47 shares of the previous week.

Fortis Global Insurance was the best-performing stock after it chalked up 58.51 per cent to trade at N1.49, Premier Paints expanded by 32.73 per cent to N14.60, Eterna gained 28.72 per cent to settle at N42.35, NGX Group rose by 21.73 per cent to N150.95, and UAC Nigeria grew by 20.63 per cent to N115.80.

On the flip side, McNichols was the worst-performing equity after it shed 21.44 per cent to N6.40, Mecure slipped by 18.92 per cent to N61.50, Multiverse depreciated by 18.72 per cent to N18.45, Jaiz Bank tumbled by 18.45 per cent to N10.30, and Omatek lost 15.38 per cent to quote at N2.20.

Generally, Customs Street witnessed buying pressure last week, as the All-Share Index (ASI) appreciated by 2.15 per cent to 196,968.15 points, and the market capitalisation moved up by 2.16 per cent to N126.437 trillion.

Similarly, all other indices finished higher except the insurance, MERI Value, consumer goods, growth and sovereign bond indices, which crashed by 1.88 per cent, 0.01 per cent, 0.09 per cent, 15.31 per cent and 3.01 per cent, respectively.