Fewer US LNG cargoes were cancelled for September loading, market sources said. According to them, buyers cancelled at least 26 shipments to be loaded at US LNG export terminals in September, compared to 45 and 40 for July and August loading, respectively. The slowdown in cargo cancellation is attributed to a forecast that demand will improve during the fall and winter.
The sources added that about 15 of cancelled cargoes are tied to Cheniere Energy’s LNG terminals in Louisiana and Texas. Meanwhile, at least seven cancelled cargoes are supposed to be loaded from Freeport LNG in Texas in September. Buyers began cancelling shipments since April due to low international prices and demand caused by the coronavirus pandemic.
Market participants expected a pick up in LNG trade in late fall and early winter, especially from the European markets. However, US LNG exporters will still require demand from the Asian markets. Market sources also said that there are still available offers for November delivery into Europe despite recent cancellations.
