Argentina's Enarsa Cancels LNG Cargo on Low Demand

Argentina’s state-owned energy company Enarsa has cancelled another delivery of LNG, as milder weather softens demand, according to Bloomberg.

• The cargo was to be supplied by TotalEnergies and was scheduled for delivery into Argentina’s Bahia Blanca terminal.
• Originally loaded in the United States, it has now been redirected to the Montoir terminal in France.
• Argentinian demand for LNG has been supressed by milder weather, reducing consumption of heating fuels. Lower heating demand has also been cited as the reason for reduced natural gas production, according to Pampa Energia.
• The cancellation follows an earlier rejection of a cargo from Swiss trading house Gunvor, allegedly due to the Russian origin of the cargo. Gunvor disputes the reasoning behind the cancelled delivery.
• Argentinian LNG imports are expected to reduce over time thanks to the opening of the Nestor Kirchner gas pipeline in July. The pipeline will transport natural gas from the Vaca Muerta formation to the capital Buenos Aires, with a second section to carry gas to San Jeronimo in Santa Fe from 2024.