Gas suppliers are rerouting or reducing speed on some liquefied natural gas vessels currently en route to North Asia, according to people familiar with the matter. Shipments to Taiwan and Japan this weekend will be affected, said the people, who requested anonymity as the information isn’t public.
Local branches of China’s maritime safety administration have issued multiple warnings for ships to avoid certain territories, citing the military exercises. A notice from the regulator in Fujian, the province along the Taiwan Strait, said ships were banned from sailing into the areas where exercises will be conducted from Thursday to Sunday.
“If there is live firing in the part of the straits that are used for navigation, then tanker traffic is likely to divert,” said Anoop Singh, head of tanker research at Braemar. He added, however, that “it is likely counterproductive economically for China to close navigations through the straits.”