Cameron LNG customers are making “modifications to their production and cargo loading plans” at Cameron LNG as growing stockpiles of liquified natural face are causing global buyers to cancel orders, Bloomberg reports.
However, the facility did not provide specifics.
Traders surveyed by Bloomberg News estimate all U.S. projects could get requests to cancel a total of 35-45 cargoes for July loading, which is higher than the number of shipments scrapped for June. That means more than half of the average monthly shipments from the fastest-growing LNG producing country could be scrapped in July.
“With U.K. summer demand expected to be lower than average and with limits on storage capacity, it’s clear that there is very little space for any additional supplies,” Hadrien Collineau, a senior analyst at Wood Mackenzie Ltd., told Bloomberg.
Cheniere Energy Inc., the nation’s biggest producer of LNG, received requests to cancel as many as 30 cargoes due for loading in July from buyers with long-term supply contracts, the news agency reports. Cheniere may also cancel some of its own cargoes, which it typically sells into the spot market.
Requests have been made to cancel shipments from both the Sabine Pass and Corpus Christi plants. Buyers from Europe to Asia have also made requests to cancel July loading shipments from other projects, including from Sempra Energy’s Cameron terminal in Louisiana and Freeport LNG Development LP’s Texas project, Bloomberg notes.