Russia’s liquefied natural gas (LNG) producer Novatek said on Thursday over 45 LNG cargoes have been canceled so far this month from the U.S., due to weak demand.
Chief financial officer Mark Gyetvay commented in an online conference that U.S. cargoes cancellations have gradually increased since February when only two cargoes were deferred. He said 25 cargoes were canceled in April, with the volume increasing to over 35 in May. Gyetvay also noted that unseasonably a warm winter, which led to higher inventories, have impacted natural gas prices more than the pandemic itself.
Recent reports suggest U.S. LNG exporters have had 40-45 cargoes canceled for August loadings, and similar volumes canceled in July. The EIA estimated that U.S. LNG exports are down over 50% so far this year. (See related story)
The CFO told Kallanish Energy the comments were just “public knowledge” information, “nothing new.” He didn’t say whether Novatek has faced any cancelations recently.
This post appeared first on Kallanish Energy News.