Asian and European buyers may cancel up to 25 LNG cargoes initially scheduled for June loading from US liquefaction facilities. Industry players attributed the cancellation to the declining spot prices in Asia and Europe, which recently touched their all-time lows.
Sixteen cargoes have been reportedly cancelled by around ten buyers from Europe and Asia. These shipments were initially planned for loading from Cheniere Energy's 10 million tons/year Corpus Christi LNG terminal in Texas and 25 million tons/year Sabine Pass LNG terminal in Louisiana. Another four importers have likely canceled five cargoes from the 10 million tons/year Freeport LNG export facility in Texas.
Customers with FOB term contracts can notify Cheniere Energy about June cargo cancellation until April 20. Cheniere's term offtakers have 45-60 days ahead of delivery date to notify the exporter if they would not be lifting their contractual volumes. However, they have to pay liquefaction fees.
