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US LNG exports rebound despite setbacks Latin America: Multiple challenges
US LNG exports are reported to be on track Mexico’s Finance Ministry has lowered its expec-
to rise for a second consecutive month in Sep- tations for Pemex, the national oil company
tember, as the spate of cargo cancellations that (NOC). The ministry said in April that Pemex
hit US liquefaction terminals over the summer was on track to produce 2.207mn bpd of crude in
slows down. 2021, but draft budget proposals have reportedly
Gas prices in both Asia and Europe rose by trimmed the forecast to 1.857mn bpd.
over 60% in August, and while they still remain But Marco Oviedo, the chief economist for
comparatively depressed, they have helped the Latin America at Barclays, told Bloomberg that
LNG trade to pick up. This comes after US LNG even this 8.4% reduction seemed overly “opti-
exports had fallen each month between March mistic.” He predicted that Pemex, which saw oil
and July, as the coronavirus (COVID-19) pan- production sink to a record low in July, would
demic hit demand, prompting a number of miss the new target.
buyers to cancel contracted cargoes. Exports of Pemex is not the only Latin American com-
US LNG fell to a 21-month low of 3.1bn cubic pany facing challenges. Fitch Ratings reported
feet (87.8mn cubic metres) per day in July, and last week that its outlook for Peru LNG, the oper-
proceeded to rebound to 3.7 bcf (104.8 mcm) ator of a natural gas liquefaction plant and export
in August. According to federal data, they are terminal in Pampa Melchorita, was negative. The
expected to rise further to 3.8 bcf (107.6 mcm) consortium’s long-term foreign and local cur-
per day in September. rency ratings have remained stable at BB-, but
This comes despite some recent setbacks, Fitch expects that the fall in global gas prices will
including both Cheniere Energy’s Sabine Pass have a negative effect on its earnings.
terminal and Sempra Energy’s Cameron LNG Meanwhile, Venezuela claims to have caught
facility being taken offline ahead of Hurricane a US operative in the act of spying on the 971,000
Laura making landfall in the region. Sabine Pass bpd Paraguana Refining Centre in Falcón State.
– the largest LNG export terminal in the US – President Nicolas Maduro made an announce-
was reported last week to have loaded its first ment to this effect on September 11 and added
cargo since going offline. However, Cameron that Venezuelan authorities had recently foiled a
LNG remains offline, and a utility warned last plot aimed at halting operations at the El Palito
week that transmission lines damaged by Hur- refinery in Carabobo State.
ricane Laura, which resulted in power supply to Maduro was speaking the day after Reuters
the terminal being cut, would take an extended reported that at least two Iranian-flagged tank-
period to repair. The facility is reported to have ers appeared to be heading towards Venezuela.
deferred cargo loadings scheduled for Septem- Iran successfully delivered five cargoes of gaso-
ber to October. line to the South American country in late May
Exports from other terminals that were not and early June, but its next attempt failed, as the
affected by the storm are also reported to be on US seized four vessels loaded with Iranian fuel
the rise. This includes the Corpus Christi LNG in August.
and Freeport LNG plants in Texas, as well as the The US government has imposed sanctions
Elba Island terminal in Georgia. on both Iran and Venezuela.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the global LNG sector then please click here for the Latin American oil and gas sector then please click
NewsBase’s GLNG Monitor. here for NewsBase’s LatAmOil Monitor.

P10 www. NEWSBASE .com Week 37 16•September•2020