The amount of natural gas flowing on pipelines to US liquefied natural gas (LNG) export plants has dropped to a nine-month low, with gas flow expected to reach 4.3 billion cubic feet per day (bcf/d), Reuters reported.
It is anticipated that around 125 US cargoes will close this summer, potentially slashing LNG deliveries to Europe by up to 424 bcf compared to pre-coronavirus predictions.
Asia and Europe have halted over 20 US LNG cargoes for both June and July, with more cancellations from international buyers expected.
US gas at the Henry Hub in Louisiana traded higher than European benchmarks since the end of April and was expected to remain more expensive through September. Most of the feedgas decline was at Cheniere Energy Inc’s export plants at Sabine Pass in Louisiana and Corpus Christi in Texas.