• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 9 minutes California breaks 1 GW energy storage milestone
  • 8 hours U.S. Presidential Elections Status - Electoral Votes
  • 11 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
  • 15 hours Сryptocurrency predictions
  • 8 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 4 hours Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
Can Turkmenistan Become A Serious Gas Player In Europe?

Can Turkmenistan Become A Serious Gas Player In Europe?

Landlocked Turkmenistan is looking to…

Natural Gas Stocks Still Have Major Upside

Natural Gas Stocks Still Have Major Upside

Natural gas stocks have lagged…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Weak Demand Forces Buyers To Cancel U.S. LNG Cargoes

Depressed global demand for liquefied natural gas (LNG) continues to drive buyers of U.S. LNG to cancel cargoes for loadings in September, sources in the industry told Reuters on Tuesday.  

Earlier this year, when demand for natural gas across the world plunged due to the pandemic, buyers began to scrap loadings of U.S. LNG, as gas in storage from Europe to Asia was abundant after a milder winter and the coronavirus that wiped out a lot of previously expected demand.

The pace of the cargo cancellations for September, however, looks to have slowed, according to Reuters’ sources who estimate that between 15 and 26 U.S. cargoes of LNG may have been cancelled.

This is nearly half the expected 45 cargoes cancelled for August, with cancellations similar to the number of U.S. LNG cargoes that were canceled for July loading. For June loading, the cancellations were fewer but still substantial—anywhere from 20 to 30.

The cargoes canceled for September loadings were mostly the result of the low prices in Europe, which has its storage capacity full, according to two of the sources who spoke to Reuters.

Historically low natural gas prices from Asia to Europe and lower demand in the pandemic have resulted in U.S. exports of LNG crashing by more than 50 percent this year, from 8.1 billion cubic feet per day (Bcf/d) in January to an expected export volume of just 3.2 Bcf/d in July, the U.S. Energy Information Administration (EIA) said last month.

Milder winter, lower demand in the pandemic, and high inventories, especially in Europe, have sent natural gas prices at the key benchmarks in Asia and Europe to record lows in recent months, making U.S. exports of LNG uneconomical. Based on the number of canceled cargoes for the coming months, the EIA expects U.S. LNG export capacity will be utilized at less than 50 percent in June, July, and August 2020.

The decline in LNG exports is dragging down domestic U.S. natural gas prices as lower shipments are threatening to aggravate the already higher-than-average gas inventories in the United States. On Monday, the spot price at the U.S. benchmark Henry Hub crashed by 5 percent.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News