Panama & Suez Canals Fall Out of Favor for LNG Exports to Asia

LNG (liquefied natural gas) that is exported from the U.S. to Asia takes one of three routes to get there. One route is via the Panama Canal, crossing into the Pacific Ocean and on from there. Another is via the Atlantic Ocean to the Suez Canal and from there via the Red Sea, which connects to the Indian Ocean. The third way is sailing through the Atlantic Ocean and around the Cape of Good Hope off the southern tip of Africa. In the past, both the Panama Canal and the Suez Canal were the preferred routes, shaving weeks from the journey. However, given recent events, the dynamic has completely changed. Now, the preferred route is the longest route --- around the Cape of Good Hope.

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