Due to a slow recovery in Asian gas demand and record-high European gas stocks, buyers of liquefied natural gas (LNG) are expected to cancel 40 to 45 cargoes for August loading from the US.
The exact number of LNG cargoes being cancelled is yet to be verified. However, the number of August cancellations expected by six of the sources to be close to 40 to 45 cargoes, the same number that was cancelled for July loading. That followed at least 20 to 30 US LNG cargoes cancelled for June loading.
Sources said the premium of gas prices in Europe over the US Henry Hub remains too tight to deliver US cargoes with a profit. From Corpus Christi in Texas, Cheniere Energy’s plants and Sabine Pass in Louisiana, another trade source said close to 30 cargoes were likely withdrawn. Up to 10 cargoes could have been cancelled from the Freeport plant in Texas and there were likely cancellations from other US projects as well, with a total of around 45 cargoes cancelled.
