Mild winter temperatures in Argentina have forced the state-run Enarsa to seek reworked agreements on LNG supplies as it is forced to divert or cancel incoming cargoes due to dropping demand.
Enarsa issued two tenders for the supply of LNG cargoes in June and July due to a cold start to the winter, however, milder weather curbed demand and created a surplus in supply.
High stock levels at Argentina’s two import terminals, the Bahia Blanca and GNL Escobar, also mean there are physical restrictions on imports.
At least four cargoes to the Bahia Blanca LNG terminal have been canceled or diverted, Reuters reports, citing trade sources.
Argentina could be facing penalty fees of up to US$5 million to suppliers due to cancellations.
There are currently seven LNG carriers on hold around Argentina’s import terminal’s while Methane Alison Victoria has already been diverted from Bahia Blanca to Jordan’s import terminal in the port of Aqaba.
LNG World News Staff