Asia's scramble to get LNG to replace the output that was cut off by the war in the Middle East has drawn a slew of cargoes from Europe. At least one U.S. shipment is now destined for China. This would end a year long halt on?such _imports because of tariffs.

Qatar, the second largest LNG exporter in the world after the U.S., is forced to compete with other buyers for the spare cargoes as a result of the conflict which began on February 28, when U.S. and Israeli attacks were launched on Iran.

Shiptracking data provided by analytics firm Kpler shows that the UMM Ghuwailina and?Elisa Ardea tankers are heading for European ports, before switching to Asia.

Kpler data revealed that the UMM Ghuwailina picked up a cargo at Plaquemines LNG, in Louisiana in the U.S. on March 1, and indicated its destination as Zeebrugge, Belgium. It then changed to Tianjin, China.

The cargo is the first to be delivered from the U.S. since Mu Lan arrived at Zhangshou, in February last year. Before tit-fortat tariffs made imports like this uncompetitive.

China has suspended the 24% tariff increase on U.S. products for a year, but it is keeping its base tariff of 10% that was imposed in November. Tariffs remain on U.S. energy products, including LNG at 15%, which has led Chinese importers divert U.S. cargos to other countries.

The vessel is currently still a long way from China, and close to the coast of Brazil. The vessel could change its course along the way, said ICIS Senior analyst Yuanda Wang.

Wang stated that U.S. LNG doesn't have a "cost advantage" under the current tariff levels.

Even if the tariffs are removed, the delivered cost would still be higher than $10 per million British Thermal Units, and therefore more expensive than the imported pipeline gas to China.

Asian buyers of liquefied?gas for delivery in March and April have paid between $20 and $25 per mmBtu.

The Elisa Ardea, which was loaded at Freeport LNG (in the U.S. State of Texas) and was originally destined for the Netherlands but diverted to Taiwan.

The Pan Americas was loaded at Bonny LNG in Nigeria, and headed for Croatia. It then turned towards Asia via the Cape of Good Hope. (Reporting from Emily Chow and Sam Li in Singapore; Additional reporting from Nora Buli, Oslo; Editing done by Christopher Cushing).

(source: Reuters)