Gas importer and marketer Pavilion Energy has taken the unusual step of cancelling the loading of a liquefied natural gas cargo from the United States, but has agreed to pay for it, Reuters reports.
The global LNG market is awash with new supply amid slowing demand in key countries such as China and Japan, leaving some traders with cargoes they have bought but are unable to resell.
“Pavilion Energy evaluated scheduling and other commercial matters, then took the decision not to lift the cargo in full coordination with the supplier,” a spokeswoman for the company, which is owned by Singapore’s sovereign wealth fund Temasek Holdings, told Reuters on Tuesday.
Industry sources told the news service Pavilion was supposed to load from the Cameron LNG plant this month.
Pavilion has a long-term supply deal with Japan’s Mitsubishi Corp to buy LNG from the Cameron plant, which is operated by Sempra Energy.