LNG exports of U.S. drops more than a third
U.S. exports of liquefied natural gas are down by more than a third after policymakers have started to enforce lockdowns to deter coronavirus spread.
Worldwide gas prices have plunged as lockdowns squeezed demand for energy, even as strong output from renewables boosted supplies.
In the United States, gas prices are now more expensive than in Europe, for the first time in a decade.
More than 20 U.S. purchasers in Asia and Europe have already canceled. LNG cargoes are expected for June and July, and more cancellations.
Gas pumps in to the United States LNG export plants dropped to a six-month low of 5.6 bcfd this week from a record 9.5 billion cubic feet per day in late March.
"Many U.S. LNG cargoes ... hitting the water today were nominated to load back in February and March, when the global demand outlook and forward prices were considerably more supportive," said Ross Wyeno, team lead for LNG analysis at S&P Global Platts.
Analysts said customers would keep canceling cargoes for the remainder of the summer because U.S. gas futures traded higher than the European benchmark counterpart through September.
Maritime Business World