On Wednesday, some trade sources said that some buyers from Asia and Europe had canceled US liquefied natural gas (LNG) cargoes for June loading as coronavirus pandemic dampened the global gas demand.
According to the sources, canceled cargoes came from Cheniere Energy’s plants, Sabine Pass in Louisiana, and Corpus Christi in Texas. 10 different firms canceled a total of 17 cargoes from Cheniere, while five cargoes from Freeport Texas plant canceled by at least three firms.
Cheniere declined to comment on commercial discussions with customers. However, it mentioned that its LNG contracts enable flexibility including a liquefaction fee payment in case the lifting of cargoes is canceled.
Some of the sources revealed that major energy groups are among the ones canceling the deal, including Royal Dutch Shell, Total and BP.
For the first time in a decade, the UK front-month contract slumped below its US counterpart this week, caused by the falling energy demand on the back of the coronavirus pandemic.
For June delivery, prices in Asia were close to USD2/ mmBtu, around USD0.1/mmBtu above the gas price on the US Henry Hub.
