Argentina’s Enarsa Cancels Third Cargo On Low Demand

Argentina’s Enarsa has cancelled a spot LNG cargo delivery due to arrive at the Escobar terminal in mid-August, according to Bloomberg, the third cargo cancellation this year.

• Enarsa canceled the shipment into Bahia Blanca due to warm winter temperatures in Argentina reducing the demand for LNG, according to sources.
• In July, Enarsa previously cancelled a Cargo from Gunvor, allegedly due to its Russian origin. It also cancelled a cargo from TotalEnergies earlier this week due to low demand.
• Argentinian demand for LNG has been suppressed in recent months 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.
• 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.